longevity hedge

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 years.

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 be transacted for smaller pension […]

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 areas of potential growth in […]

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 significantly larger than the capacity […]

Opportunities for pension schemes who are looking to transfer longevity risks through the use of instruments such as longevity swaps or annuities, could become closed off due to the Eurozone crisis, according to a new report from Towers Watson. The report which details the results of a survey of several major providers –  insurance companies […]

The UK, and some other countries in Europe, lead the way when it comes to awareness of longevity risk and use of longevity risk transfer instruments to reinsure or hedge against the risks of pensioners living longer than expected. The UK in particular has seen the most activity in the longevity risk transfer market thanks […]

The UK’s Royal County of Berkshire pension fund, who completed their first longevity hedge with Swiss Re back in December 2009, are looking to repeat the experience and have issued a request for proposals for a second longevity hedge. The 2009 transaction was the first time a public sector pension fund had looked to hedge […]

As well as the roundtable discussion on catastrophe bonds which we covered earlier here, Standard & Poor’s also held a roundtable discussion on the topic of longevity securitization recently. Again the full publication of the discussion can be downloaded by subscribers to S&P’s Global Credit Portal or purchased from S&P here. With the growing longevity […]

In a recent white paper titled ‘Longevity and Pensions – protecting company pensions against longevity’ AEGON argue that companies need to actively investigate the level of longevity risk their pension scheme faces and proactively de-risk themselves. They say that despite longevity being seen as a relatively new risk to pension schemes there are now a […]

We’ve received a press release from JPMorgan which gives much more detail on the longevity hedge transaction they have entered into with Pall (which we announced earlier). This deal is groundbreaking in terms of structure and has the potential to accelerate development in the longevity hedging and risk transfer market. The press release in full […]