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Some firms paying insurers to take on ballooning pension costs

Demand for such transfers may eclipse insurance industry's capacity, giving banks opening to sell "death derivatives"

Companies in the UK, where benefits are indexed for inflation and mortality estimates are updated annually, have been more aggressive at shifting pension risk. .


PEOPLE are living longer - and that's bad news for some companies' bottom lines.

As pension plans incorporate new life expectancy estimates into their calculations, investors are glimpsing the financial fallout from ageing societies.

AT&T Inc last month...

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