BBC Pension Scheme completes £6b longevity swap with Zurich, MetLife

The BBC Pension Scheme has finalized a £6 billion longevity swap with Zurich Assurance and MetLife, covering around 21,000 pensioner members. It marks the second phase of the Scheme’s hedging program — following a £3 billion swap with Zurich in 2020 — and brings longevity protection to nearly all of its pensioner and dependant liabilities.

The structure keeps investment control with the Trustee while offloading the financial risk tied to members living longer than expected. Zurich intermediated the deal, while MetLife took on the reinsurance risk. Aon advised the Scheme and coordinated the Zurich–MetLife structure.

A&O Shearman, Slaughter and May, Eversheds Sutherland, and Debevoise & Plimpton provided legal support across the parties.