AXA France and Hannover Re complete €750m longevity swap


The first longevity swap transaction featuring a French insurance company cedent has been completed. AXA France and Hannover Re have announced this morning the completion of a €750m longevity swap transaction.

The reinsurance treaty underlying the longevity swap transaction covers 22,000 insured policyholders with associated pension liabilities amounting to approximately EUR 750 million for AXA Retirement Savings Company, the French insurers pension insurance arm which has a roughly 20% market share.

Nicolas Moreau, CEO of AXA France, hailed being the first French insurer to enter into a longevity swap transaction; “AXA France innovates by securing a significant part of commitments associated with longevity through reinsurance. We are the first insurer in France to transfer such liabilities.”

The longevity risk transfer market and longevity swaps have been most prevalent to date in the UK, where pension funds have been keen to offload their exposure to an aging population and the resulting increasing pension liabilities. Hannover Re, the reinsurer in this transaction, said that companies across Europe are increasingly expressing a need for longevity risk solutions.

“I am pleased that with our latest block transaction we have been able to demonstrate that our expertise in reinsurance products for the longevity risk also extends to the French market,” Ulrich Wallin, CEO of Hannover Re, commented.

We’ve added this latest longevity swap to our list of longevity risk transfer and longevity swap deals.

Artemis Live - ILS and reinsurance video interviews and podcastView all of our Artemis Live video interviews and subscribe to our podcast.

All of our Artemis Live insurance-linked securities (ILS), catastrophe bonds and reinsurance video content and video interviews can be accessed online.

Our Artemis Live podcast can be subscribed to using the typical podcast services providers, including Apple, Google, Spotify and more.




Print Friendly, PDF & Email

Artemis Newsletters and Email Alerts

Receive a regular weekly email newsletter update containing all the top news stories, deals and event information

  • This field is for validation purposes and should be left unchanged.

Receive alert notifications by email for every article from Artemis as it gets published.

Read previous post:
UK’s Railways Pension Scheme added reinsurance investment in 2013

Another of the UK's largest pension funds, the Railways Pension Scheme which provides pensions to workers from the UK's privatised...