17 December 2013
Clifford Chance advises Deutsche Bank on £3.5bn of longevity swaps with the AstraZeneca Pension Fund and five Carillion plc pensions schemes
Clifford Chance has advised Deutsche Bank on two longevity swaps, one with the Trustees of the AstraZenaca Pension Fund, in respect of approximately £2.5bn of the fund liabilities, and one with the Trustees of five pension schemes sponsored by Carillion plc, in respect of approximately £1bn of the fund liabilities.
Under each of the arrangements, Deutsche Bank will hedge the longevity exposures of the scheme, passing on the risk to a syndicate of reinsurers, including new entrants into the market.
This transaction continues Clifford Chance's growing reputation as a market leader in longevity derivatives and insurance solutions, and follows on from its work on the transactions relating to the Rolls Royce Pension Fund (November 2011), the Akzo Nobel Pension Scheme (May 2012), and the BAE Systems 2000 Pension Plan (February 2013).
The multi-disciplinary team at Clifford Chance consisting of lawyers in London, Paris and Frankfurt was led by partner Andrew Coats (finance) and senior associate Thomas Lockley (finance), and included London partners Katherine Coates (insurance), Narind Singh (insurance), Hywel Robinson (pensions) and Chris Davies (tax), all part of Clifford Chance's cross-practice pension investment group.