Phoenix Life’s Longevity Swap Conversion


Eversheds Sutherland has advised Phoenix Life on the conversion of its longevity swap into an £800m buy-in with the LV= Employee Pension Scheme.

The Trustee of the LV= Employee Pension Scheme, working closely with its corporate sponsor, Liverpool Victoria Financial Services Ltd, (LV=), has converted a longevity swap held with ReAssure (reinsured by Swiss Re) into a c.£800m buy-in with Phoenix Life.

This represents a significant de-risking step for the pension scheme and reduces volatility in the amount of capital that LV= is required to hold (as a regulated financial institution) in respect of Defined Benefit (DB) pension scheme funding risks.

The Trustee entered into the longevity swap in 2012 and, following conversion to buy-in, Swiss Re will continue to cover the longevity risk by providing reinsurance to Phoenix Life.

The Eversheds Sutherland team was led by corporate insurance Partner Hugo Laing (Picture) with support from Principal Associate Harriet Sayer and Senior Associate Paul Denham.

The team at Eversheds Sutherland also worked closely with the key deal team members at Phoenix Life Limited, including Justin Grainger (Head of Bulk Purchase Annuities), James Mushin (Head of Bulk Purchase Annuity Pricing) and Jake Turcan (Senior Legal Adviser).

Involved fees earner: Paul Denham – Eversheds Sutherland; Hugo Laing – Eversheds Sutherland; Harriet Sayer – Eversheds Sutherland;

Law Firms: Eversheds Sutherland;

Clients: Phoenix Life;