The UK is leading the world when it comes to hedging the longevity risk contained in many defined benefit pension plans.
In a $3 billion deal, Rothesay Life will be assuming the longevity-related liabilities of 55 percent of the plan participants of the RSA Insurance Group pension plan.
Goldman Sachs is the parent company of Rothesay Life.
Liability swaps such as this are poised to gain traction in the UK, but are essentially non-existent in the United States since certain legal aspects of the transaction are still in question.
Source: Financial Times
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