LONDON May 29 Insurer Rothesay Life, part of
Goldman Sachs, is to insure 190 million pounds ($285.68
million) of pension liabilities for medical devices maker Smith
Smith & Nephew's two final salary-linked retirement plans -
the UK pension fund and the UK executive scheme - are paying
Goldman's Rothesay Life for a form of investment policy that
will generate income to cover payments to members, the insurer
said on Wednesday.
Demand for such insurance has grown strongly because many
British pension funds, hit by longer lifespans and low
investment returns, are struggling with rising pension deficits
and are looking for ways to offload some of their obligations.
Rothesay expects the UK market for these deals - known as
bulk annuities - to reach 5-6 billion pounds this year, up from
4 billion last year.
Rothesay, which launched in 2007 and acquired rival
Paternoster in 2011, said it wrote more than 1 billion pounds of
new bulk annuity business in 2012.
The insurer did the biggest bulk annuity deal in 2012 with
the Merchant Navy Officers Pension Fund at 680 million pounds
Rothesay Life competes with the likes of Pension Insurance
Corporation, Legal & General, Aviva and