Prudential in $1.7 billion longevity reinsurance deal with Rothesay Life

Prudential Retirement, a division of Prudential Financial Inc., has announced the completion of a longevity reinsurance transaction with Rothesay Life which sees the Prudential covering pension liabilities amounting $1.7 billion (approx. £1 billion).

This is the fourth longevity reinsurance transaction that Prudential has concluded with pensions and retirement focused insurer Rothesay Life and its affiliates.

Under the terms of this latest longevity reinsurance deal, Prudential will provide longevity reinsurance to Rothesay Assurance Limited for a block of 93 pension schemes, covering pension liabilities amounting to $1.7 billion (£1 billion) for 20,000 pensioners and deferred pension scheme members in the UK.

“We are pleased to be able to collaborate with Rothesay in another transaction that helps to provide secure retirement benefits for thousands of pensioners,” commented Phil Waldeck, senior vice president of Pensions and Structured Solutions for Prudential Retirement.

“This transaction demonstrates the continued strength of the pension risk transfer market and the capacity in the insurance and reinsurance sector to support the growing pension de-risking trend and to provide greater certainty for managing plan liabilities with longevity risk solutions,” added Amy Kessler, senior vice president and Head of the Longevity Risk Transfer team for Prudential Retirement.

“Rothesay Life is delighted to build upon its partnership with Prudential with this new transaction,” said Tom Pearce, managing director, Rothesay Life. “This latest deal is a further example of Rothesay Life’s low risk approach to managing its business.”

Prudential recently also closed a record-breaking (£16 billion, or $27.7 billion) longevity reinsurance transaction with the BT Pension Scheme.

View our list of longevity swap and risk transfer transactions.