MetLife, Inc., one of the largest life and annuities insurance groups in the world, has announced that it completed four UK based longevity reinsurance transactions with Legal & General Assurance Society Limited (Legal & General) in 2020.
MetLife has been expanding its longevity risk transfer and reinsurance activities in the United Kingdom over the last year.
By providing reinsurance to these pension consolidator insurers, MetLife is helping them to offload the risk that covered pensioners live longer than expected.
Commenting on the newly announced transactions, Jay Wang, senior vice president and head of Risk Solutions at MetLife’s Retirement & Income Solutions business said, “Legal & General is a market leader in the U.K. bulk annuity space and we are pleased they have selected MetLife to reinsure these obligations. As a result of these transactions, Legal & General can better manage longevity risk by tapping MetLife’s deep expertise and strong ability to execute in this space.”
The agreements saw Metropolitan Tower Life Insurance Company providing reinsurance to Legal & General to cover the longevity risk associated with roughly $2 billion of combined pension liabilities.
“We are looking forward to growing this relationship,” explained Wang. “2020 was an extraordinary year for the U.K. pension and longevity risk transfer market. Looking into 2021, the market remains very robust, and we are eager to expand our presence as a reinsurance solution for direct insurers like Legal & General.”
Read about many historical longevity swap and reinsurance transactions in our Longevity Risk Transfer Deal Directory.