LV= has struck an £800m deal which will see re-insurer Swiss Re take on the longevity risk of its defined-benefit scheme.
The agreement relates to more than 5,000 people who were members of the LV= Employee Pension Scheme as of 31 December 2011.
Swiss Re says it is the first longevity insurance contract to include DB scheme members who have yet to retire.
Swiss Re UK chief executive Russell Higginbotham says: “We are pleased to have worked closely with LV= and the pension plan trustees to tailor a solution that precisely meets their objectives.
“The result is the first ever pension plan longevity contract that insurers the exposure of members yet to retire.”
LV= chief financial officer Philip Moore says: “The ageing population and increases in life expectancy have created a need for better management of longevity risk across the insurance and pension industries.
“We are pleased to have worked closely with our pension plan trustees and Swiss Re to find a solution that insulates our pension scheme from much of this risk.”