Pilkington picks longevity swap

The glass maker Pilkington has agreed a £0.8bn pension longevity swap with Legal & General. It brings the total number of swaps completed last year to five with a total value of liabilities covered to £7bn.

Longevity swaps allow firms to offset the risk of their pensioners living longer than expected. The trend for big corporates to manage future financial risk with such deals is growing, with BMW and Rolls-Royce already completing £3bn deals.

James Mullins, of Pilkington adviser Hymans Robertson, said: "several large transactions are still in the pipeline."