Prudential & Rothesay Life strike $1.2bn longevity reinsurance deal


Prudential Financial and Rothesay Life have announced their sixth major longevity reinsurance transaction since 2011, with a $1.2 billion deal covering liabilities associated with 22,500 pensioners, across eight pension plans.

The longevity reinsurance deal sees Prudential assuming the longevity risk for $1.2 billion (about £960 million) of UK pensioner liabilities from Rothesay Life, the UK’s fourth largest writer of annuities.

Prudential said the transaction marks underscores a thriving UK pension risk transfer market, demonstrating the appetite for “U.K. pension de-risking and the continuing focus among U.K. group annuity writers to optimize capital and manage risk with longevity reinsurance solutions.”

“Prudential is very proud to build upon its growing partnership with Rothesay Life,” commented Amy Kessler, head of Prudential Retirement’s Longevity Risk Transfer business. “Through six years and six transactions, our teams have worked consistently and collaboratively to meet Rothesay’s longevity reinsurance needs and to help secure the retirement benefits for thousands of U.K. pensioners.” T

Said Tom Pearce, managing director at Rothesay Life, “Rothesay is delighted to have completed this transaction with Prudential, building upon the longstanding relationship between the two firms. Entering into this agreement further underscores our proactive approach to risk management as we provide for the secure retirement of thousands of annuitants.”

David Lang, vice president of product development at Prudential, who led the transaction; “The growing U.K. market for pension de-risking has created a significant need for reinsurance solutions. As part of our long-term partnership, Rothesay consistently taps into Prudential’s longevity reinsurance capacity and expertise to support its market-leading pension risk transfer business in the U.K.”

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

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