Nabarro has advised the Trustee of the BAE Systems 2000 Pension Plan on the completion of the largest ever UK longevity swap. The arrangement, with Legal & General, protects the pension plan against the risk of its 31,000 current pensioners living longer than expected, covering a total of £3.2bn of pension liabilities (£2.7 bn as measured by the Plan). Legal & General will pass 70 per cent of the longevity risk to Hanover Re for reinsurance.

Nabarro won a competitive pitch to advise new clients BAE Systems 2000 Pension Plan on pension matters just over a year ago. It is understood that Nabarro won the work on the basis of its exceptional client relationship management which has been a key priority for the firm from the outset and was an important element in this transaction.

The Nabarro team was led by Kate Richards, assisted by fellow pensions partner Ian Greenstreet, banking partner Andrew McLean and IP partner Belinda Doshi.

Commenting on the transaction, pensions partner Kate Richards, said:

"The Nabarro pensions team has demonstrated its ability to act on one of the largest and most complex pension liability swaps the UK has ever witnessed. It is particularly important to us that we have achieved such a positive outcome for a major new client. It was a complex decision but the Trustee decided that it was the right thing to do at the right time and for the right price."

This is the second ground-breaking matter for the Nabarro pensions team in a matter of months. At the end of last year, it won recognition for successfully advising the Trustee of the IBM Pension Plan in a rectification claim heard by the Supreme Court.

Allen & Overy acted on commercial negotiations for BAE Systems plc and on specified matters for the trustee. Clifford Chance acted for Legal & General.

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