LV= has completed a £800m longevity insurance contract with reinsurer Swiss Re in the first pension scheme longevity deal that insures the exposure of members yet to retire, the companies claim.

The longevity insurance contract covers over 5,000 individuals who were members of the LV= Employee Pensions Scheme as of 31 December 2011. Within this, the deal covers the 1,000 scheme members down to age 55 that have not yet retired.

Commenting on the deal, LV= trustee chairman Michael Allen said: "We are pleased to have concluded this deal, which maximises the extent of the longevity coverage by including insurance not just for pensioners but also many of our older deferred members. This is an important step in minimising the risks inherent in LV='s main staff pension scheme.”

Swiss Re's UK chief executive officer Russell Higginbotham added: "We are pleased to have worked closely with LV= and the pension plan trustees to tailor a solution that precisely meets their objectives. A key requirement was to efficiently maximise the extent of the longevity coverage. The result is the first ever pension plan longevity contract that insures the exposure of members yet to retire."

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