RSA takes £1.9bn pension liability insurance
RSA has taken out a £1.9 billion insurance policy to protect against its future pension liabilities.
The group has secured a deal with Rothesay Life, a subsidiary of Goldman Sachs, to cover increased funding from 2010.
The insurer’s final-salary scheme is already closed to new members.
The news comes as new figures from the Pension Protection Fund show the total deficit of the UK’s 7,400 defined-benefit schemes rising to £200.1 billion at the end of June.
The shortfall has increased from £179 billion in May and compares with a surplus of £13 billion in June 2008.
Of the schemes surveyed, 87% were in deficit, mainly as a result of lower gilt yields.
Last month, a report from PricewaterhouseCoopers claimed that 96% of businesses with defined benefit schemes believed the schemes were unsustainable.
Research by the accountancy firm also revealed that 16% had already closed their final-salary schemes to new members.
Category: Financials, Insurance News, Royal & Sun Alliance News
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