LONDON (Reuters) - Brewer Heineken (AS:HEIN) said on Monday it had agreed a deal to transfer 2.4 billion pounds ($3.71 billion) in longevity risk to Friends Life, now part of insurer Aviva (L:AV).
The deal covers around 19,000 pensioners in the defined benefit, or final salary, pension scheme of the Scottish & Newcastle Pension Plan, a statement said on Monday.
"By hedging against longevity, we have reduced a significant amount of the Plan's risk should the overall life expectancy of members exceed our projections," said Neil Parfrey, UK head of pensions at Heineken.