Five pension schemes sponsored by construction group Carillion have agreed a longevity swap with Deutsche Bank covering £1 billion of liabilities, in a sign that bulk annuity and longevity deals are returning to the UK pensions market.

The swap will protect Carillion against the risk that the 9,000 pensioners in schemes sponsored by such subsidiaries as Alfred McAlpine and Mowlem live longer than expected. Liabilities at the schemes total £2 billion.