Specialist pensions insurer Rothesay Life said on Wednesday it was insuring 1.6 billion pounds ($2.5 billion) of the pension scheme of Britain's Civil Aviation Authority (CAA), bringing its new business this year to 3.4 billion pounds.
Rothesay Life is competing with specialist providers and larger insurers such as Legal & General and Prudential in the growing bulk annuity market, in which insurers take on the risk of defined benefit, or final salary, pensions.
Companies are often keen to offload these schemes from their balance sheets. But prolonged low interest rates have pushed many schemes into deficit, making them expensive to insure.
British private sector pension scheme liabilities total 2 trillion pounds, outstripping the country's GDP for the first time, consultants Hymans Robertson said last month.
The CAA deal was a buy-in, in which Rothesay insures part of the overall pension scheme, the firm said in a statement. It gave no financial details of the deal.
Rothesay Life, whose backers include Blackstone and Goldman Sachs, has said it is preparing for a possible stock market flotation. ($1 = 0.6431 pounds) (Reporting by Carolyn Cohn)
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