Pacific Life Re, a UK-based specialist life reinsurer has completed a longevity reinsurance agreement with Rothesay Life.

The agreement provides Rothesay Life with protection against a significant portion of the longevity risk arising from its insurance of 20% of the pension liabilities of the Airways Pension Scheme, one of the two defined benefit pension schemes sponsored by British Airways.

David Howell, CEO of Pacific Life Re, said: We are very pleased to be continuing our relationship with the highly capable team at Rothesay Life in providing a robust solution that complements the pension scheme transaction.

”The completion of this arrangement further enhances Pacific Life Re’s position as a leading provider of bespoke longevity hedging solutions for insurers and we look forward to working with Rothesay Life on other future opportunities.”

Addy Loudiadis, chief executive of Rothesay Life, said: Rothesay Life values the ongoing association with Pacific Life Re highly and this transaction is a further example of how we can work together successfully to complete an important milestone transaction for the industry.