Blue-chip firms look to farm out pension liabilities.

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The market for transferring pension scheme risk to an insurance company has grown sharply over the past six months--and this trend is expected to continue, according to a research report by actuary Lane Clark & Peacock (LCP).

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The report shows that at least ten FTSE-100 schemes are evaluating quotations to buy out some or all of their liabilities this year. The largest buy-out agreed so far has been the 800m [pounds sterling] deal to insure P&O's current pensioners, but seven quotes have been issued by insurers for potential transactions worth more than 1bn [pounds sterling].

LCP predicts that the market will be worth over...

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