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.

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