LONDON, July 4 Britain's BT has agreed an
insurance and reinsurance deal to protect its pension scheme
against the costs associated with increases in life expectancy,
it said on Friday.
The former state telecoms group has the largest private
sector defined pension plan in Britain.
BT said the arrangements it had taken out would cover over
25 percent of the scheme's total exposure to improvements in
longevity, covering some 16 billion pounds ($27 billion) of the
The trustee has set up a wholly owned insurance company,
which has in turn reinsured the longevity risk with The
Prudential Insurance Company of America.
BT said the agreement would not require additional
contributions to be made by it.
($1 = 0.5877 British Pounds)
(Reporting by Kate Holton; editing by James Davey)