Last week’s buyout of Paternoster by Rothesay Life will not result in redundancies, Pensions Management has learned.

The buyout, which took place on January 12, was paid for by Rothesay parent Goldman Sachs.

The deal was an important strategic acquisition for Rothesay, resulting in a 75% increase of its previous £4bn of business to £7bn.

The continuing fiscal woes in Ireland are unlikely to result in a boost in buyout business, according to the Irish Association of Pension Funds.

The capital markets are unable to provide a suitable hedge for UK pension schemes hedging longevity risk, according to John Ralfe.

The bulk annuity market looks set to generate £15bn worth of business in 2010, according to research from Pensions Management.

Despite the relatively quiet start to the year, buyout and buy-in providers predicted transaction levels would return to the heyday of 2008, with a surge of deals expected by the end of the year.

However, cost-cutting led Prudential not to write any new bulk annuity business in the first half of 2010, citing a “disciplined approach of only participating in [bulk annuity] transactions that meet strict return on capital requirements” in its Q2 report.

Plans to equalise guaranteed minimum pensions (GMPs) will “significantly” increase the cost of buyouts, forcing some smaller schemes out of the market, research shows.

Paternoster has announced a £2bn longevity swap with BMW – its first deal since switching its business model from insurance to product design.

Risk transfer business levels are next year tipped to exceed those of 2008, according to respondents to PM’s buyout/buy-in survey.

DIY buy-in and longevity hedging deals accounted for nearly double the £1.5bn traditional buyout and buy-in business for the first half of 2009, according to Hymans Robertson.

Competition among longevity swap providers is forcing down prices and has attracted six FTSE 100 companies to obtain quotations.

The inaugural Buyout and Derisking Conference brought together trustees, scheme managers, finance directors, consultants and politicians to explore solutions that help defined benefit (DB) schemes make their members’ pensions more secure and reduce their impact on company balance sheets.

Buy-in deals are set to eclipse buyout deals in 2009, industry experts have predicted, though uncertainty still surrounds compensation in the event of insurer defaults.