The longevity swaps have been arranged for both the Pirelli General Pension and Life Assurance Fund and the Pirelli Tyres Limited 1988 Pension and Life Assurance Fund with Zurich Assurance.
Mercer acted as lead adviser on the transaction.
Tony Goddard, pension manager at Pirelli, said: “Significant steps have already been taken to manage other risks in the funds. We are pleased to continue this process with these transactions and to seize the early opportunity to hedge longevity risk.
“The longevity swaps help to improve the security of benefits for all members by removing the uncertainty from members living longer than forecast. They also allow us to retain future investment flexibility.”