This chapter examines how life insurance companies hedge interest-rate risk using swaps as part of their Asset-Liability Management processes. It focuses on mitigating the duration mismatch between long-term liabilities and shorter-term assets by incorporating interest-rate derivatives into the asset portfolio. The illustration demonstrates how a receiver swap can be used to increase asset duration, reducing the duration gap and stabilizing present value of future profits or losses against interest-rate fluctuations. The case emphasizes the importance of effective duration as a metric and the role of optimization in aligning asset and liability sensitivities to market changes.