Longevity hedging news

The results of a poll conducted in July 2012 amongst trustees, finance directors, and other pension fund executives from 51 different UK pension funds, show that the pension funds consider longevity risk as the biggest single threat to their funding levels. Respondents were asked to rank a series of risks according to potential for impact […]

Artemis attended the 6th Annual European Insurance-Linked Securities Conference, held by rating agency Standard & Poor’s in London, earlier today to hear what the speakers had to say about the market. One of the panels was particularly timely as it discussed the potential for further development of the longevity risk transfer market and asked the […]

This telling statistic comes from some research undertaken by PwC which looked at defined benefit pension plan valuations in the UK and what they were doing, or planning to do, to overcome rising deficits. PwC surveyed 98 UK defined benefit pension schemes and found that on average they will likely need an extra three years […]

Reinsurer Swiss Re has renewed calls for a liquid market for longevity risk transfer to be created in their latest publication. With recent estimates suggesting that the average pension fund is already underfunded by 24%, life expectancy increasing globally and over $20 trillion of defined benefit assets exposed to longevity risk, Swiss Re insists that […]

Pension plans and schemes are increasingly looking at their ability to fund their obligations to pensioners as their returns fall due to the wider economic and financial market issues and their pensioners live longer meaning they are on the hook for more payments than expected. This scenario is leading pension plans to look to ways […]

PensionsFirst Capital, a wholly owned subsidiary of PensionsFirst Group, who offer pension risk transfer solutions to major UK companies in the management and derisking of their defined benefit pension schemes, have announced the appointment of a new CEO. Ex-Credit Suisse Fixed Income MD, Hugo James, has joined PensionsFirst Capital as CEO to lead the company’s drive […]

The largest public pension fund in the world, Japan’s Government Pension Investment Fund (GPIF), is becoming a perfect example of the need for Japan to adopt longevity risk management and longevity hedging strategies urgently in order to be able to meet their growing liabilities. Japan’s population is aging rapidly and at the same time the […]

The Life & Longevity Markets Association (LLMA), an industry group who have been working to make longevity a tradeable risk, have announced today the launch of its own four longevity indices. The LLMA Longevity Indices can be used as a reference for the transfer of longevity risk from those seeking to hedge to investors and […]

Aon Hewitt have announced that they acted as the lead advisor on the recently closed Pilkington longevity swap transaction, which we wrote about earlier today here. The deal saw UK insurer Legal & General enter into a £1 billion longevity swap with the Pilkington Superannuation Scheme, L&G then offloaded the risk through a longevity reinsurance […]

2011 could be a record year for pension scheme risk transfer deals as the desire to de-risk or offload risks including longevity grows among pension fund managers. So far 2011 has seen significant volumes in the pension buy-in and buy-out arena and also longevity swaps. By the end of 2011 pension consultants Hymans Robertson expect […]