Longevity reinsurance news

SCOR Global Life, the life and longevity reinsurance focused unit of the globally active French reinsurer, has promoted five as it seeks to strengthen its leadership across the life and longevity reinsurance arm of its business.

The longevity swap, longevity reinsurance and pension risk transfer market continues to grow, with £30 billion of pension risk transfers undertaken year-to-date with almost £22 billion of these consisting of longevity swap deals, according to Aon Hewitt.

A unit of Prudential Financial Inc., is providing UK based insurer Legal & General Group with a $2.2 billion (£1.35 billion) longevity reinsurance cover for a portion of its pension bulk annuity business.

A research paper looking at mortality rates in the UK, concludes that there could be errors in the current data provided by the Office for National Statistics (ONS) and suggests that this could lead to basis risk within longevity hedges, swaps or reinsurance transactions.

A new survey performed by Mercer, the retirement specialist arm of brokerage Marsh & McLennan, found that UK defined benefit pension funds have continued to increase their life expectancy assumptions, leading to growing longevity risk.

Dutch insurance, pensions and investments firm Delta Lloyd has entered into an index-based longevity swap transaction covering €12 billion of its longevity reserves with Reinsurance Group of America.

The pension scheme of UK closed life and pension fund consolidator Phoenix Group, has entered into a longevity swap transaction with its own insurer Phoenix Life Limited, simultaneously reinsuring the longevity risk on a quota share basis.

Aon Hewitt, the retirement product unit of insurance and reinsurance broker Aon, highlights the growing pension risk settlement and longevity risk transfer market in its latest report, saying that overall the market is already at a record level in 2014.

Prudential Retirement, a division of Prudential Financial Inc., has announced the completion of a longevity reinsurance transaction with Rothesay Life which sees the Prudential covering pension liabilities amounting $1.7 billion (approx. £1 billion).

The first longevity swap transaction featuring a French insurance company cedent has been completed. AXA France and Hannover Re have announced this morning the completion of a €750m longevity swap transaction.