Babcock International Group conducts second longevity swap

Babcock International Group has entered into a longevity swap for a second defined benefit (DB) pension scheme.

The firm implemented the first ever longevity swap for a UK pension scheme earlier this year.The new 50-year swap agreement, with Credit Suisse, hedges out mortality risk for an additional 7,00 pensioners, as well as their dependents and spouses.

Andrew Birkett, group pensions manager, said: “All contracts [within the business] are about stability within
the group and we didn’t want pensions coming in and upsetting that stability.”

It is now planning to enter into a third swap agreement for its main Babcock International defined benefit scheme.

Link to related article