MetLife reinsures $320m of pension longevity risk for Rothesay Life

Share

Metlife, Inc., one of the largest life and annuities insurance groups in the world, completed a second longevity reinsurance transaction in the UK market, reinsuring $320 million of pension liability related longevity risk for Rothesay Life.

Metlife entered into the longevity reinsurance arrangement with Rothesay Life using its susbidiary Metropolitan Tower Life Insurance Company.

Rothesay Life is a regular underwriter of pension related exposures, entering into numerous pension risk transfer transactions over the years.

As a such it is a heavy user of longevity reinsurance and has also entered into other longevity risk transfer arrangements in the past.

“Reinsurance solutions play an important role in direct insurers’ ability to secure the retirement benefits of U.K. pensioners,” explained Graham Cox, executive vice president and head of Retirement & Income Solutions at MetLife. “This transaction gives MetLife the opportunity to use our mortality expertise and supports Rothesay in its pension de-risking activity.”

The transaction saw MetLife’s Metropolitan Tower Life Insurance Company providing reinsurance to Rothesay Life for the longevity risk associated with around $320 million of pension liabilities.

“We look forward to building our relationship with Rothesay, a leading direct insurer in the U.K. pension de-risking market,” Cox added. “This transaction grows our book of business in the U.K. longevity reinsurance market and continues to build on our long history of risk management expertise in this space.”

“We are delighted to have executed a longevity reinsurance agreement with Metropolitan Tower Life for the first time,” Tom Pearce, Managing Director, Rothesay said. “A deep and diverse pool of reinsurance capital helps the UK de-risking market to grow and supports the long-term security we provide for pensions.”

Met Life entered into its first UK longevity reinsurance transaction earlier this year with pension consolidator Pension Insurance Corporation plc (PIC).

Read about many historical longevity swap and reinsurance transactions in our Longevity Risk Transfer Deal Directory.

———————————————————————
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:
COVID & business interruption to elevate rated paper preference: RenRe CEO

The experience of the reinsurance market with COVID-19 and business interruption, as well as the expectation that uncertainty will persist...

Close