MMC UK Pension Fund's first longevity swap transaction to
include active members, under incorporated cell Fission Gamma IC
Limited, will cover approximately £2 billion in liabilities
for 14,500 pensioners, deferred and active defined benefit
members.
Fission Gamma, a new Guernsey-based incorporated cell, was
created to insure the longevity risk of the fund and to reinsure
this risk with leading global re-insurer Munich Re. Insuring
longevity risk in this way enables the fund to protect itself
financially against longevity risk.
The Guernsey aspects of the transaction were advised by law firm
Carey Olsen, including partner Christopher Anderson, senior
associate Alex Mauger and associate Oliver Orton. The fund was
advised by Mercer, a wholly owned subsidiary of Marsh McLennan.
