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

The announcement of ITV’s longevity swap could indicate a sea change in pension funds’ approach to risk management solutions. However, smaller funds could find themselves left behind. Thomas Whittaker reports

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