ITV, the UK commercial broadcaster, has become the third large company to arrange a longevity-swap deal for its £2.2bn pension scheme, covering it financially against the risk its members will live longer than expected. The transaction is a big boost for longevity swaps, which have been thin on the ground despite confident predictions from banks and consultants.

ITV has signed a swap with the investment bank Credit Suisse, covering £1.7bn of its pension liability. The deal works by exchanging cashflows - ITV will pay a fixed sum each month to the bank, and in return, the bank will pay a sum to the pension fund that matches the benefits it has to pay to retired staff.