UK Providing Leadership in the Longevity Swap Market
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...
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