mortality risk

Conditions in the life reinsurance market may begin to favour more participation from alternative capital and insurance-linked securities (ILS) managers and funds, as the consolidated market heightens concerns about counterparty concentration.

The burgeoning $58 trillion mortality protection gap impacting Asia was highlighted by reinsurance giant Swiss Re recently, signalling an opportunity for capital providers in the insurance, reinsurance, catastrophe bond and insurance-linked securities (ILS) space.

Life reinsurer Reinsurance Group of America Inc. has offloaded a massive $200 billion block of mortality risk associated with in-force individual life reinsurance business to the retrocession operations of Pacific Life Insurance Company.

German reinsurance firm Hannover Re has successfully completed a retrocessional transfer of extreme mortality risks to the capital markets, through the placement of an index-linked mortality swap with largely institutional investors.

A research paper looking at mortality rates in the UK, concludes that there could be errors in the current data provided by the Office for National Statistics (ONS) and suggests that this could lead to basis risk within longevity hedges, swaps or reinsurance transactions.

Resolution Life, the life focused arm of insurance entrepreneur Clive Cowdery’s Resolution Group, has set up a new permanent capital structure which aims to acquire and manage in-force portfolios of life insurance to benefit its institutional investors.

SCOR Global Life, a subsidiary of French reinsurer SCOR SE, has completed a VIF (Value of In Force) life reinsurance transaction with Mediterráneo Vida, a Spanish insurer owned by Banco Sabadell.

The UK government announced changes to the pension regime which could result in significantly lower amounts of annuities being purchased as well as a reduction in longevity risks at pension schemes and life insurers.

Numerix, a leading independent provider of analytical tools for derivatives valuation and risk management, has added a new ‘Life’ asset class to its products with the introduction of a mortality model. The model aims to help actuaries with stochastic projection of mortality improvements to enable better quantification of longevity risk.

Global law firm Hogan Lovells assisted French reinsurer SCOR on its recent life reinsurance transaction. Hogan Lovells acted as an advisor to SCOR on the deal which saw SCOR Global Life Reinsurance Ireland plc, an Irish subsidiary of SCOR Global Life SE, enter into a life reinsurance transaction with leading Spanish life insurance company, BBVA […]