UK Corporate interest in shifting the risk of retirees’ benefits to insurance companies remains strong, in spite of a sharp rise in costs following the collapse of Lehman Brothers in September, according to a report from actuaries Lane Clark & Peacock.
The value of pension fund buy-outs – the transfer of retiree liabilities to insurance companies – totalled about £8bn in 2008, below the £10bn forecast that LCP made a year ago but well ahead of the £2.7bn in buy-outs seen in 2007. The firm expects 2009 liabilities transfers to be about equal to those of last year.
