MetLife reinsures $5bn of pension longevity risk for Rothesay Life


MetLife, Inc., one of the largest life and annuities insurance groups in the world, has announced that it completed two more UK based longevity reinsurance transactions with pensions insurance specialist Rothesay Life, covering $5 billion of risk.

MetLife has been expanding its longevity risk transfer and reinsurance activities in the United Kingdom over the last year.

The re/insurer entered into its first longevity reinsurance transaction in the UK with Pension Insurance Corporation plc, then followed up with a second with Rothesay Life.

More recently we covered the news that MetLife had completed four UK based longevity reinsurance transactions with Legal & General Assurance Society Limited (Legal & General) in 2020, covering $2 billion of risk.

Now, the company has revealed two more longevity reinsurance transactions for Rothesay Life.

The second and third longevity reinsurance transactions between MetLife and Rothesay Life Plc, saw its subsidiary Metropolitan Tower Life Insurance Company reinsuring roughly $5 billion of pension liabilities associated with two UK bulk annuity transactions that were completed in the fourth quarter of 2020.

“We are pleased to expand our relationship with Rothesay and build on our previous success to execute the latest two transactions very quickly and efficiently,” explained Jay Wang, senior vice president and head of Risk Solutions for MetLife’s Retirement & Income Solutions business. “With these transactions, we will continue to execute on our strategy, using our actuarial expertise and history managing longevity risk to expand our footprint within the U.K. longevity reinsurance market.”

“Despite the pandemic, the U.K. pension and longevity risk transfer market remains remarkably resilient and robust, offering opportunities for MetLife to continue to support direct insurers and pension schemes in the U.K. on hedging longevity risk,” Wang added. “We look forward to further strengthening our relationship with Rothesay and supporting the business in its de-risking activity.”

“We are pleased to continue to grow our relationship with MetLife through these longevity reinsurance agreements. As a business purpose-built to protect pensions, strong reinsurance partnerships help us to deliver the long-term security we provide for policyholders,” David Cox, Co-Head of Pricing and Reinsurance at Rothesay also commented.

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

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