longevity insurance

Due to a dislocation in current pricing for longevity swaps, caused by lower rates of improvement in mortality in the UK, retirement and health advisory Aon Hewitt, a division of the global insurance and reinsurance broker, has warned pension schemes to delay any longevity transactions for the moment.

Insurance group Zurich has completed another longevity swap transaction, helping an unnamed pension fund enter into a risk transfer arrangement covering £50m of pension longevity liabilities and with 75% of the risk transferred to reinsurance firm Pacific Life Re.

Insurance group Zurich has completed two longevity swap transactions with pension funds of the Pirelli group, between them covering £600m of pension longevity liabilities and with 75% of the risk transferred to reinsurance firm Pacific Life Re.

UK life and longevity insurance and reinsurance firm Legal & General says it is actively quoting on more than £16 billion (over US$20.7 billion) of new longevity swaps in the UK alone, and says that it wants to take its pension risk transfer strategy, including longevity risk transfer, to the United States.

Specialist longevity risk information provider Club Vita and insurance and reinsurance player Legal & General have teamed up to bring longevity risk transfer to a wider audience of pension schemes, with the goal of providing an automated longevity insurance pricing service.

The Bank of England is monitoring the trend of UK pension fund or insurer longevity risk and liabilities going offshore through reinsurance transactions, such as longevity swaps, as non-EU re/insurers can hold less capital against longevity risk, according to a report from Bloomberg.

Demand from life insurance and reinsurance firms will drive continued growth and also global expansion of the market for pension longevity risk transfer and swaps, according to a report from Prudential Financial, Inc.

New longevity assumptions that increase the life expectancies for pension plan cohort members, which ultimately increase pension plan accounting liabilities, will not affect the cost of insurance and reinsurance capacity for longevity risk transfer, according to Prudential.

Pension Insurance Corporation, a UK-based specialist provider of insurance solutions for defined benefit pension funds, has announced the completion of a pension buy-in transaction for UK children’s charity the National Society for the Prevention of Cruelty to Children (NSPCC). The transaction protects the NSPCC pension scheme from risks such as longevity, inflation and investment on […]

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 […]