longevity hedge


NN Life gets index-based longevity hedge from Hannover Re

NN Life, part of the Nationale-Nederlanden (NN Group), has entered into an index-based longevity hedge transaction with reinsurance firm Hannover Re, in a deal covering the insurer against longevity trend risk associated with around EUR 3 billion of its liabilities.The transaction was facilitated by adviser to NN Group Longitude Solutions read the full article →

Canada Life Re provides reinsurance for Aegon’s €6bn longevity hedge

The €6 billion longevity risk transfer hedge completed recently by Dutch headquartered life, pensions and annuities focused insurer Aegon, which Artemis covered here yesterday, was supported by reinsurance capacity from Canada Life Re.The transaction, which is the first 40% of a €15 billion longevity risk transfer package deal, was completed read the full article →

Aegon completes third Dutch longevity hedge, covers €6bn of liabilities

Dutch headquartered life, pensions and annuities focused insurer Aegon has completed its third longevity risk transfer transaction, hedging €6 billion of longevity reserves in the Netherlands to further reduce its exposure to longevity improvements.Previously Aegon has hedged and secured reinsurance for its longevity risk through a €12 billion longevity swap read the full article →

Longevity swap sponsors can halve deal costs with own re/insurers

Pension fund sponsors of longevity swaps can as much as halve the transaction costs by establishing their own special purpose insurance or captive vehicle, or using a service provider, in order to more directly access sources of longevity reinsurance capital.In the past a longevity swap transaction typically saw the pension read the full article →

MNOPF in £1.5 billion direct longevity hedge to Pacific Life Re

The UK's Merchant Navy Officers Pension Fund (MNOPF) has completed a direct longevity hedge or swap transaction with £1.5 billion of its members longevity risk ultimately being reinsured by life and longevity focused reinsurance firm Pacific Life Re.The trustee of MNOPF has followed a recent trend of establishing its own read the full article →

UK pension fund longevity risk grows with life expectancy increase

A new survey performed by Mercer, the retirement specialist arm of brokerage Marsh & McLennan, found that UK defined benefit pension funds have continued to increase their life expectancy assumptions, leading to growing longevity risk.Mercer's 2014 Valuations Survey shows that on average UK defined benefit pension funds are increasing life read the full article →

New mortality tables to add $100Bn to U.S. pension obligations: Moody’s

Rating agency Moody's warns that the impending release of new actuarial mortality tables, due by 31st October, could trigger a raft of pension risk transfer deals as the new mortality assumptions may add $100 billion to U.S. pension benefit obligations.In an article regarding a recent pension risk transfer deal which read the full article →

Longevity hedging market could hit capacity crunch: PwC

Analysis from PwC questions the ability and capacity of traditional reinsurers to support the potential growth of the longevity hedging market over the next few years. PwC predicts the market for risk transfer in the form of longevity swaps and hedging in the UK could triple over the next three read the full article →

Bentley pension scheme in £400m longevity swap with Abbey Life

The smallest longevity swap deal that we've seen has been completed, according to an article on Professional Pensions today. The £400m longevity risk transfer deal hedges the risk of pensioners living longer for luxury car manufacturer Bentley's UK pension scheme. The size of the deal shows that longevity swaps can read the full article →

Life insurers expected to get more involved in pension fund longevity risk transfer

Fitch Ratings says in a press release that UK life insurers are expected to increase their pension exposure from corporates looking to offload pension fund risks including longevity. There is an opportunity for life insurers to grow their business by participating in pension risk transfer with one of the main read the full article →