Co-operative is second firm to ditch longevity swap deal
Sunday 06 June 2010
The Co-operative has become the second company in a week to ditch plans, through a so-called longevity swap deal, to insure itself against the risk of pension fund members living longer than anticipated.
Premier Foods recently spiked a plan to offload risk on a £2bn scheme, after the firm's finance director, Jim Smart, a former finance director at Friends Provident, claimed such contracts didn't represent value for money.
The Co-operative had been considering a new deal three years after it insured £2bn worth of pension fund assets through Swiss Re. But a spokesman for Co-operative Financial Services said such plans had been shelved: "Recently, we considered a potential longevity swap, but are not currently progressing this option."
According to a recent report from the consultants Lane Clark and Peacock, the price of longevity swaps is likely to increase, as the demand to ditch such risk outweighs supply.
Meanwhile, it's believed Prudential is looking to offload billions of pounds worth of longevity risk, too. The Pru, which has traditionally taken on pension fund risk through its annuities arm, has drastically cut back on writing new business because of the onerous capital requirements needed.
- 1 Students heading off to 'charity challenge' grounded at Gatwick after travel firm goes bust
- 3 Daily Show's Jon Stewart destroys Fox News for its Ferguson coverage
- 5 Like Jennifer Aniston, I am no less of a woman because I am childless
Ashya King missing: Police hunt five-year-old boy with brain tumour snatched from Southampton hospital by his parents
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Daily Show's Jon Stewart destroys Fox News for its Ferguson coverage
Californian drought is so severe it's 'causing the ground to move'
Botched ice bucket challenge leaves man critically injured after plane drops hundreds of gallons of water
Exclusive: We share blame for creating 'jihad generation', says Muslim strategist
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
- < Previous
- Next >
iJobs Money & Business
£450 - £500 per day: Orgtel: SAS Business Analyst, London, Banking, Credit Ris...
£32000 - £38000 Per Annum Bonus, Life Insurance + Other Benefits: Clearwater P...
£200 - £250 per day + competitive: Orgtel: KYC Analyst, Key Banking Client, Bi...
£400 - £500 per day: Orgtel: Test Manager - Banking - West Yorkshire - £400-£5...