ITV's longevity swap could herald a change in risk management

A new dawn

Dawn

The completion of ITV’s £1.7 billion longevity swap could rekindle pension schemes’ interest in longevity hedging. However, such swaps remain largely the remit of a small minority with the necessary time and resources to pursue them.

The deal between the ITV pension scheme and Credit Suisse is the third largest of its kind so far, removing the risk of increases in pension liabilities that would arise if a significant proportion of the scheme’s defined benefit pensioner population were to enjoy a