Rolls-Royce hedges against increased life expectancy

Rolls-Royce, the trustees of the engine-maker's pension fund and Deutsche Bank have got together to agree a deal that will reduce the risk on around £3bn of the fund's liabilities.

The parties have agreed to a "longevity swap" deal after agreeing on an average life expectancy for the pension scheme's 37,000-or-so members.

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"We have made sure that as our pensioners live longer in retirement we have made proper provision for them," said Rolls-Royce's finance director, Andrew Shilston.

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