Aon was the broker behind the placement of a £900 million asset and longevity risk transfer arrangement for UK insurer Liverpool Victoria (LV=), which saw Reinsurance Group of America (RGA) assuming the risks from a portfolio of LV=’s annuity business.
This transaction, which was originally announced by the participants in December, saw Reinsurance Group of America (RGA) providing an asset, risk and longevity reinsurance solution to LV=, as the reinsurer sought continued expansion in European markets.
Martin Bird, Head of Risk Settlement at Aon, commented, “Executing on tight deadlines in a complex environment really plays to our strong technical longevity skills, but also to our transaction structuring capability.”
Aon ran a comprehensive reinsurance carrier selection process, after which an appropriate carrier and structure were identified to match LV=’s risk appetite and technical requirements.
Colin Dutkiewicz, Head of UK Life Reinsurance at Aon, added, “Our approach is to stand next to our clients in dealing with the potential counterparties – which is also to the benefit of the counterparties as we bring much greater execution certainty to the transaction.”
Mark Laidlaw, Chief Capital and Investment Officer at LV=, also said, “As a large life insurer, LV= is experienced at executing reinsurance transactions on traditional life business, but given the bespoke nature of this transaction, we significantly benefitted from the breadth of Aon’s global market knowledge and product expertise.”
The £900 million reinsurance deal provides RGA with access to European asset-intensive risk business, while enabling LV= to reduce its risks and liabilities on a defined portfolio of annuities.
Read about many this and many other historical longevity swap and reinsurance transactions, in our Longevity Risk Transfer Deal Directory.