May 15, 2018 / 8:08 AM / 7 months ago

Zurich agrees 2 billion pound longevity swap for Britain's National Grid

FILE PHOTO: The logo of Zurich Insurance Group is seen at the company's headquarters in Zurich, Switzerland September 2, 2013. REUTERS/Arnd Wiegmann//File Photo

LONDON (Reuters) - Zurich Insurance (ZURN.S) has agreed a longevity swap deal to cover more than two billion pounds ($2.71 billion) of pensioner liabilities for National Grid (NG.L), it said on Tuesday.

The Swiss insurer has reinsured a “significant proportion” of the swap with Canada Life, it said in a statement.

The swap reduces the risk of members of the electricity supplier’s pension scheme living longer than expected.

“The policy will provide increased certainty on the cost of providing current benefits, which will therefore reduce the funding risks faced by the Group Trustee and National Grid in the future,” said Jon Carlton, chairman of the trustees of the Electricity Supply Pension Scheme.

Reporting by Carolyn Cohn and Simon Jessop, editing by Maiya Keidan

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