BMW plans unloading from UK pension scheme

German auto giant BMW may unload around $4.07bn (£2.5bn) of longevity risks from its UK pension sche

In what could be the biggest deal of its kind, the company is reportedly in talks to shift part of its pension liabilities to specialist reinsurers.

Deutsche Bank's specialist unit Abbey Life and Paternoster are understood to be negotiating for the deal, which is expected to be announced later this month.

Longevity swaps are built around protecting pension schemes against the risk of retirees living longer than expected.

BMW did not confirm the report but said that the longevity hedge "would make it easier for the company to budget for future pension payments and therefore make scheme funding more secure overall."