longevity insurance

Lloyds Banking Group Pensions Trustees Limited has completed two new longevity swap transactions with Rothesay Life Plc, covering £5.1 billion of protection, with reinsurance capacity provided by Pacific Life Re International Limited, and an insurance subsidiary of US-based Prudential Financial, Inc.

Insurance and reinsurance broker and risk advisory Aon has warned today that re/insurers and pension funds need to avoid over-reacting to how inclusion of COVID-19 deaths changes recognised mortality models, saying that “longevity risk has not gone away.”

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.

Last year was a testing one for the market in longevity swaps, as both pensions and reinsurance markets reacted to changes in mortality expectations driven by new data, creating market uncertainty, Aon Hewitt said.

UK headquartered insurance group Legal & General is looking to expand its activity in longevity risk transfer, through insurance, reinsurance and longevity swaps, to the United States as it sees an opportunity to grow the business there.

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.

Legal & General has made two appointments into its Pension Risk Transfer business, the segment where the firm assists pension schemes to de-risk, including through longevity swaps and reinsurance arrangements.

Pension fund longevity exposure is over-valued, resulting in a potential for over UK£25 billion to be wiped off the collective deficit of UK defined benefit pensions if more accurate longevity assumptions were used, according to specialist longevity risk information provider Club Vita.

Global insurance player Zurich has completed another longevity swap transaction, helping a smaller UK pension plan to cover £300 million of its longevity related pension liabilities, with SCOR providing the reinsurance capacity to back the deal.

The Canada Life Assurance Company has helped the pension plan of the Canadian Bank Note Company, Limited to a streamlined longevity swap, a $35 million transfer of longevity risk associated with its pensioners which is the smallest transaction we’ve seen at Artemis.