Bedell Cristin has advised Munich Re on a £1 billion longevity swap arrangement with the Willis Pension Scheme, in a longevity hedging deal that covers some 3,500 pension scheme members.

The transaction was undertaken using the Longevity Direct solution offered by Willis Towers Watson, which enables pensions to access more directly sources of reinsurance capital by using a cell captive as an insurance intermediating structure sitting between them and the reinsurer.

The £1 billion longevity hedging deal transfers the risk of pensions in payment, offering long-term protection against additional costs that arise because ...