UK pension risk transfer market breaks £10 billion barrier in 2011

The UK pension risk transfer market had a record year in 2011, with the combined total volume of longevity swaps, pension buy-ins and buy-outs breaking the £10 billion barrier for the first time in a single calendar year. This reflects the growing awareness from pension scheme trustees that longevity risk read the full article →

Longevity hedging for all

An Aon Hewitt executive told Professional Pensions that even small pension schemes should consider hedging their longevity risks or entering into longevity risk transfer transactions. To date, longevity risk transfer transactions have been large affairs with schemes worth billions involved, but the Aon Hewitt representative suggests that could change. As the read the full article →

Prudential announces completion of its first longevity reinsurance transaction

Prudential Retirement has announced the completion of its first longevity reinsurance transaction. The transaction sees Prudential provide reinsurance to UK based Rothesay Life, a subsidiary of Goldman Sachs, covering pension account longevity risks to a value of UK£100m (approx $160m). “Plan sponsors face significant uncertainty and exposure to pension risk,” said read the full article →

Prudential completes the first pension buy-in transaction in the U.S.

The market for pension scheme hedging, de-risking and pension risk transfer has taken another step forward as Prudential announced the completion of the first pension buy-in transaction in the United States. To date the pension risk transfer market has been more prevalent in Europe. Prudential's Portfolio protected Buy-in product was used read the full article →

Pension scheme de-risking volume set to grow

The volume of deals completed to de-risk pension schemes of their longevity and other risks looks set to grow according to a report from Hymans Robertson. Their Managing Pension Scheme Risk Report for Q1 2011 looks back at the deals done in the past quarter and ahead to the prospects read the full article →

London Stock Exchange transfers pension liabilities to Pension Corporation

The London Stock Exchange (LSE) has transferred a portion of its pensioner members liabilities to Pension Corporation (PIC) in a buy-in transaction which see's PIC insure all their current pension scheme members and automatically insure future pensioners for the next five years. The innovative deal effectively minimises the LSE's pension read the full article →

£20 billion of pension scheme risk transfer deals likely by end of 2012

Hymans Robertson has published its Managing Pension Scheme Risk Report Q4 2010. In the report which looks at the state of the pension scheme risk management and risk transfer market they suggest that significant growth is likely over the next couple of years and beyond. Since the pension scheme risk transfer read the full article →

GlaxoSmithKline transfer 15% of their pension fund liabilities to annuities from Prudential

Pension funds are facing up to their increasing longevity risks by seeking new ways to transfer their risks to other parties, the capital markets or into investments. GlaxoSmithKline are the latest to enter into a deal which sees them enter into bulk annuity contracts with Prudential to pass on the read the full article →