longevity risk transfer

The AstraZeneca Pension Fund Trustee has entered into a longevity swap covering £2.5 billion of liabilities and approximately 10,000 of its pensioners with investment bank Deutsche Bank, passing the ultimate risk onto reinsurance firms.

A £1 billion longevity swap transaction has been completed by Deutsche Bank AG for five of the Carillion plc support services groups defined benefit pension funds, with the risk ultimately being passed onto reinsurers.

The unique structure utilised within the recently completed Aegon longevity risk transfer transaction has been developed in the hope of bringing some standardisation, transparency and more deal flexibility to the longevity hedging market.

UK insurance and investment group Legal & General is partnering with Club Vita, an initiative of Hymans Robertson, the independent consultancy and actuarial firm with a focus on pension risk, on longevity risk analysis.

Insurer Aegon has announced the completion of its second longevity risk transfer transaction to capital markets investors and reinsurers today. The deal sees Aegon transfer €1.4 billion of longevity risk to third-party investors and reinsurers including SCOR.

A new research effort will now get underway to investigate and develop a method for assessing the basis risk in longevity risk transactions, after Cass Business School and Hymans Robertson successfully won the bid for the research work.

Pension Insurance Corporation (PIC), a specialist provider of insurance and risk transfer solutions for defined benefit pension funds, announced today that it has recently acquired reinsurance to cover £1.4 billion of its own longevity exposure.

As it attempts to kick-start a liquid market in longevity risk, Deutsche Bank is set to perform the first trade of a new longevity risk transfer instrument, which it calls the Longevity Experience Option (LEO), by the end of this year according to a report.

Investment bank Goldman Sachs has announced the sale of a majority stake in its leading UK pension risk transfer specialist life insurer, Rothesay Life. The sale has been expected since August as Goldman Sachs continues to offload insurance and reinsurance business stakes to meet capital rules.

Rothesay Life, a leading UK pension risk transfer specialist life insurer and provider of bulk annuities, has completed a pension risk transfer transaction for the Philips Pension Fund, taking on a portion of its liabilities including longevity risks.