Rothesay Life announces a further £1.3bn longevity insurance for British Airways’ scheme
16th December 2011
Rothesay Life has today announced a further £1.3bn longevity insurance of pension liabilities of the Airways Pension Scheme, one of the two defined benefit pension schemes sponsored by British Airways. Rothesay Life, which is one of the UK's leading life insurers specialising in providing de-risking solutions to the pension scheme market, originally provided insurance in June 2010 for some 20% of the pensions in payment. The insurance announced today increases the longevity risk cover to 40%.
Keith Satchell, Chairman of Rothesay Life, said: "We are very pleased that we have been able to work with the Trustees again to insure additional benefits against increasing life expectancy. We believe this extension further demonstrates Rothesay Life's expertise in designing and executing solutions. This is the second repeat trade for Rothesay this year, which we believe is a real endorsement of the team.”
Paul Spencer, Chairman of the Trustees of the Airways Pension Scheme, commented: "One of our principal objectives is to make members' pensions more secure. Most of our investments aim to produce an income that closely matches the pensions we expect to pay, but this still leaves the risk that longevity could improve faster than we have budgeted for. We identified an opportunity to further protect the Scheme against some of these extra costs and, after thoroughly reviewing options with our advisers, selected Rothesay Life again based on their ability to structure a contract around our needs."
Notes to Editors:
Rothesay Life is an insurance company established in the UK as a wholly-owned subsidiary of The Goldman Sachs Group, Inc. and is authorised and regulated by the FSA.
Rothesay Life aims to provide tailor-made solutions for pension schemes seeking to mitigate their exposure to financial and longevity risks, thereby meeting the requirements of pension scheme members, trustees and corporate sponsors.
In December 2011, Rothesay Life has also announced transactions with the Uniq plc Pension Scheme (12 December) and the TI Group Pension Scheme (8 December) and completed the transfer of Paternoster UK Limited’s business to Rothesay Life Limited on 14 December following the approval of the High Court.
Keith Satchell Chairman
Chairman of Rothesay Life since February 2007, previously CEO of Friends Provident plc and a former Chairman of the Association of British Insurers.
Addy Loudiadis CEO
Chief Executive Officer of Rothesay Life, having set up the team in 2006 as a Managing Director at Goldman Sachs. She previously served as the co-head of the Goldman Sachs European Financing Group and co-head of the Investment Banking Group in Europe.
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centres around the world.
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