Hewitt Associates, a global human resources consulting and outsourcing company, has doubled the size of its UK Longevity & Risk team over the last 12 months to meet the significant growth taking place in the buy-in and longevity swap market.

Martin Bird, head of the Longevity & Risk Solutions team at Hewitt in the UK, said:

"As we expected, 2010 has seen continued focus on risk transfer deals. Total volume of business for the year is now in excess of £6 billion, including high profile transactions such as BMW and British Airways. We expect that by the end of 2010, over £10 billion of deals will have been signed in this year alone. Although the market in longevity risk transfer is still relatively new, many trustees and sponsors are now exploring whether it is suitable for their schemes."

Combining longevity swaps with interest and inflation swaps enables pension schemes to select which risks to run and which to eliminate. It allows them to select the best provider for each risk and optimise market timing.

Martin Bird continued:

"The pricing of different longevity risk transfer solutions can now be compared with a "DIY" approach.  Schemes can contrast a buy-in to a combination of interest swaps, inflation swaps and longevity swaps which can achieve the same overall level of liability de-risking. Schemes are being more innovative in deciding which risks they wish to retain, how much of each risk to retain and in which order to tackle the de-risking process.  As we see funding levels improve, we also expect the buy-in market to return with schemes deciding to remove a package of risk in a single policy."

The Hewitt Longevity & Risk Solutions team helps clients understand and manage the risks they face, and advises on all types of longevity risk transfer transactions, including buy-ins and buy-outs, longevity swaps and DIY solutions.

Martin Bird said:

"The team has doubled in size over the past 12 months from 15 to 30 people as we have both anticipated market growth during the year and responded directly to demand from clients who have wanted to explore and execute transactions that are right for their schemes.

"The team focuses on all aspects of longevity de-risking solutions, including understanding longevity risk - using the market leading Hewitt Longevity Model - modelling and assessing asset risks, and helping clients to navigate their way through the complexities of different longevity risk transfer product structures.  We expect to see continued focus on risk management and de-risking solutions for the foreseeable future."

About Hewitt Associates
Hewitt Associates (NYSE: HEW) provides leading organisations around the world with expert human resources consulting and outsourcing solutions to help them anticipate and solve their most complex benefits, talent, and related financial challenges. Hewitt works with companies to design, implement, communicate, and administer a wide range of human resources, retirement, investment management, health care, compensation, and talent management strategies. With a history of exceptional client service since 1940, Hewitt has offices in more than 30 countries and employs approximately 23,000 associates who are helping make the world a better place to work. For more information, please visitwww.hewitt.com.