£1.9B pension buy-in deal featuring Pacific Life Re and Rothesay Life is biggest ever

by Artemis on July 16, 2010

£1.9B worth of RSA Insurance Group plc pensioner liabilities have been reinsured in the largest to date pension buy-in transaction. Pacific Life Re has reinsured a significant proportion of the transaction featuring pensioner liabilities which are secured by Rothesay Life.

The transaction represents over 55% of current pensioners benefits under the main RSA UK scheme.

Chief Executive of Pacific Life Re David Howell said; “We are delighted to have worked with Rothesay Life on this ground-breaking transaction. Our involvement represents another major step in establishing Pacific Life Re as a leading longevity reinsurer in the UK market. The complementary expertise and experience of Rothesay Life and Pacific Life Re were crucial in ensuring the successful completion of this complex transaction and we look forward to working together on further opportunities.”

Chief Executive of Rothesay Life Addy Loudiadis added; “We are very pleased to have concluded this reinsurance arrangement with Pacific Life Re. Their team has worked imaginatively with us to design a reinsurance contract to match the features of the longevity insurance with RSA. Their knowledge of the market, together with their security proposition as part of a large US life insurance group, make them an ideal reinsurance partner for Rothesay Life.”

The pension buy-in market and pension or longevity de-risking is becoming a very hot topic at the moment as deals increase in size and both corporates and insurers look to get the risk of pensioners living longer off their balance sheets. Rothesay Life also recently completed a £1.3B deal with British Airways pension scheme.

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