longevity hedging

Longitude Exchange, the Bermuda-based digital marketplace for trading in index-based longevity risk, and Dedomainia, a technology company offering longevity swap solutions, are to collaborate on index-based longevity hedging.

Longevity analytics firm, Club Vita has partnered with Bermuda-based insurtech Longitude Exchange, the world-first digital marketplace for trading in index-based longevity risk, to improve both the transparency and efficiency of the longevity risk transfer market.

A world-first digital marketplace for trading in index-based longevity risk is set to open in Bermuda, insurtech Longitude Exchange announced today.

Legal & General Group Plc has assisted one of the pension schemes of airline British Airways to convert a longevity swap it already had into part of a $4.4 billion pension buy-in, the largest bulk annuity transaction to-date and among the only examples of a longevity swap conversion.

Moving from longevity hedging, through longevity swaps and other insurance or reinsurance instruments, to a full bulk-annuity buy-in, is now a viable approach to pension fund de-risking, according to Aon Hewitt.

UK headquartered life and annuities insurance and reinsurance company Legal & General has hired Pretty Sagoo from Deutsche Bank to the role of Head of the Strategic Business in its pension risk transfer team.

In response to the new Continuous Mortality Investigation (CMI) model, recent reductions seen in national mortality improvements can no longer be regarded as a “blip” and have put the pension longevity swap and reinsurance market into a state of flux, according to Aon Hewitt.

UK closed life and pension fund consolidator Phoenix Group has unwound its 2014 £900 million longevity swap transaction with the help of Aon Hewitt, shifting to an annuity arrangement which it received beneficial pricing on thanks to having the swap arranged in advance.

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.

For pension schemes around the world looking to offload their longevity risks, the good news is that the longevity swap structure continues to evolve and options for longevity hedging continue to open up to a wider range of pensions.