(Reuters) - British alcoholic drinks retailer First Quench is insuring a chunk of its pension liabilities with specialist provider Pension Insurance Corporation, improving retirement benefits for its 1,966 members.

A growing number of "final salary" pension schemes are running into trouble because of rising longevity and low UK government bond yields.

Insurers and reinsurers are capitalizing on increased demand from pension funds for ways to manage their liabilities by underwriting individual pension funds and charging a fee.

Pension Insurance Corp said on Wednesday it would assume responsibility for managing some of the of pension liabilities held by the trustees of the First Quench fund - amounting to 160 million pounds ($242.26 million).