Transferring the pension scheme risk of people living longer than expected to an insurance company or bank has taken a step forward this month with the longevity swap between RSA and Rothesay Life.

The £1.9bn (€2.2bn, $3bn) tailored deal, where Rothesay Life insures liabilities for 55 per cent of RSA’s pensioners, through an asset and a longevity swap, is likely to attract attention from other pension schemes seeking to reduce longevity risk, experts say.