30 November 2011
Clifford Chance advises Deutsche Bank on £3bn longevity swap with Rolls-Royce Pension Fund
Clifford Chance has advised Deutsche Bank on a longevity swap with the Trustees of the Rolls-Royce Pension Fund. The contract reduces the longevity risk on approximately £3bn of the fund's liabilities. Around 37,000 pensioners are covered by the agreement.
Under the agreement, Deutsche Bank will hedge the longevity exposures of the scheme, passing on the risk to a syndicate of reinsurers.
Derivatives partner Andrew Coats said: "This is an important transaction for Deutsche Bank. To complete the longevity swap and the reinsurance exits at the same time required a high degree of coordination to transfer efficiently the risk in the transaction."
A multi-disciplinary Clifford Chance team consisting of lawyers from the derivatives, insurance, pension and tax groups in London and other offices was led by London partners Andrew Coats (derivatives), Katherine Coates (insurance) and Hywel Robinson (pensions) and senior associate Thomas Lockley (derivatives).