Longevity - Canada Life hedges Equitable longevity with JP Morgan swap

News

The nascent market in longevity derivatives has received a boost with the execution of a £500 million notional longevity swap between Canada Life and JP Morgan. The deal was used by Canada Life to hedge part of its £4.6 billion portfolio of non-profit pension annuities it bought from Equitable Life in 2006.

Although Canada Life declined to be quoted on the transaction, sources familiar with the company say that the trigger for the deal was the rapid growth in longevity exposure as the firm pursu