Longevity reinsurance news

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 London office of law firm Sidley Austin LLP acted as a legal adviser to global reinsurer Munich Re on its recently completed £300m reinsurance deal which saw Munich Re assume £300m of longevity risk from Pension Insurance Corporation. The Sidley team was led by the head of the London insurance team, Martin Membery, and […]

Pension Insurance Corporation (PIC), one of the largest insurers of pension plan longevity risks and as a result a firm who assume large amounts of longevity risks themselves, has offloaded £300m of longevity risks by hedging them through a reinsurance agreement with Munich Re. The transaction see’s Munich Re take on £300m of liabilities and […]

Reinsurer Swiss Re has announced the completion of a £1.4 billion longevity insurance transaction for one of AkzoNobel’s UK pension funds. The collateralised re/insurance deal was written through Swiss Re subsidiary ReAssure Ltd. The transaction covers 17,000 individuals and their future contingent beneficiaries who were members of the AkzoNobel Pension Scheme at the 1st August […]

The UK, and some other countries in Europe, lead the way when it comes to awareness of longevity risk and use of longevity risk transfer instruments to reinsure or hedge against the risks of pensioners living longer than expected. The UK in particular has seen the most activity in the longevity risk transfer market thanks […]

Prudential Financial have announced their first longevity reinsurance transaction of 2012. The deal see’s Prudential Retirement reinsure Goldman Sachs subsidiary Rothesay Life, covering the longevity related pension liabilities almost 20,000 members of the Uniq plc Pension Scheme who are insured by Rothesay through a buy-in transaction. The longevity reinsurance covers pension liability values of $665m […]

UK based insurer Legal & General, who were recently involved in the £1 billion longevity risk transfer transaction with the pension scheme of Pilkington (which we covered here) are seeking to bring longevity risk transfer solutions to smaller pension schemes. They want to target schemes which have pensioner liabilities of as low as £50m, saying […]

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 […]