longevity bond


SCOR & Pension Insurance Corp. in £1.2bn longevity reinsurance deal

French reinsurance giant SCOR has completed a £1.2 billion longevity reinsurance deal with specialist defined benefit pension insurer Pension Insurance Corporation plc (PIC), covering the longevity risk for around 8,000 pensioners and spouses. The transaction is the second between the two companies, after they completed a £1 billion transaction in 2017. The read the full article →

Longevity swaps to double to over £10bn in 2019: WTW

The longevity swap market has been a little quiet in 2018 for a number of reasons that we've documented over the months, but broker Willis Towers Watson (WTW) expects that 2019 will be far more active, with a doubling of longevity swap volumes predicted. As we've written before, there is no read the full article →

Capital markets can plug longevity reinsurance capacity gaps: Hymans Robertson

The capital markets and its investors can plug any gaps in longevity reinsurance or risk transfer capacity should demand for longevity hedging rise, with index-based longevity hedging likely to become a focus should that need arise, according to Hymans Robertson. There remains significant reinsurance capacity available to soak up global pension read the full article →

OECD calls for capital markets to embrace longevity risk hedging

With life expectancies set to continue improving, the OECD yesterday called for the capital markets to offer additional capacity for the hedging of longevity risk, but said that longevity risk instruments need to be standardised to increase transparency and liquidity. In its annual Pensions Outlook 2014, the Organisation for Economic Co-operation read the full article →

S&P affirms ratings on mortality, longevity, life ILS transactions

Standard & Poor’s (S&P), the global credit rating agency, has affirmed the ratings on seven tranches of insurance-linked securities (ILS) from transactions which transferred mortality, longevity and life insurance risks to the capital markets. The ratings on the mortality catastrophe bond type deals, from Swiss Re's Vita Capital issues, and the read the full article →

Swiss Re: A capital market for longevity risk has to be created

The recent report on longevity risk from the IMF highlighted that the exposure is likely being severely underestimated and that globally longevity risk amounts to tens of trillions of dollars of exposure which is not currently being managed. The amount of longevity exposure in pension funds around the world is read the full article →

Aging populations and longevity risk transfer through securitization topical in China

Proponents of longevity risk transfer through instruments such as securitization via a catastrophe bond type structure (in a similar manner to Swiss Re's Kortis Capital deal), or swaps, derivatives and hedging mechanisms, will be pleased to learn that this has now become a topic of discussion in China. Usually thought to read the full article →

Lack of a reference price hinders longevity risk market

Yesterday, we wrote about the new report from Swiss Re which discusses the role of state governments in insurance and the role that insurance-linked securities have to play in financing the risks that they face. The report also discusses the longevity risk issue and the role that governments could play read the full article →

Governments, capital markets and re/insurers need to tackle longevity risks

To tackle the issue of longevity risk, the risk of an increasingly ageing population and the impact that will have on pension liabilities, the re/insurance industry will need to work closely with both governments and capital markets. On its own the re/insurance industry does not have the capacity to assume read the full article →