longevity risk transfer

Highlighting the importance of measuring, tracking and understanding longevity risks faced by pension funds, Danish pension fund manager ATP Group disclosed a loss in its pension activities mainly due to longevity risk discovered after an annual update of its members life expectancies.

Numerix, a leading independent provider of analytical tools for derivatives valuation and risk management, has added a new ‘Life’ asset class to its products with the introduction of a mortality model. The model aims to help actuaries with stochastic projection of mortality improvements to enable better quantification of longevity risk.

A consultation document on longevity risk transfers has been published by the Joint Forum, a forum established by the Basel Committee on Banking Supervision (BCBS), the International Organization of Securities Commissions (IOSCO) and the International Association of Insurance Supervisors (IAIS) to deal with issues common to the banking, securities and insurance sectors.

Rothesay Life, a leading UK pension risk transfer specialist life insurer which owner Goldman Sachs intends to sell a majority stake in, has completed another pension risk transfer transaction. The £280m bulk annuity transaction sees Rothesay Life take on more pension plan risk including covering longevity.

Goldman Sachs is seeking to sell a majority share in its leading UK pension risk transfer specialist life insurer, Rothesay Life. A specialist in insuring the risks associated with pension schemes, and as a result involved in transferring longevity risks, Rothesay Life will follow the same route as Goldman’s reinsurer, which it sold a majority […]

Analysis from PwC questions the ability and capacity of traditional reinsurers to support the potential growth of the longevity hedging market over the next few years. PwC predicts the market for risk transfer in the form of longevity swaps and hedging in the UK could triple over the next three years.

The largest ever UK pension insurance buyout transaction has been recently completed by specialist insurer Pension Insurance Corporation (PIC). The transaction saw PIC insure the full £1.5 billion of liabilities associated with the 20,000 members of the EMI Group Pension Fund.

According to a report published by Asian Investor, investment bank Société Générale is planning to launch a new capital markets focused longevity risk transfer product similar to an insurance-linked security or catastrophe bond structure. Société Générale is said to be ready to launch the first deal in July and is already lining up investors to […]

The Canadian Wheat Board (CWB) has entered into a $150m transaction with Sun Life Assurance Company of Canada, a subsidiary of Sun Life Financial Inc., to transfer investment and longevity risk from CWB’s defined benefit pension plan to Sun Life. It is the first inflation-linked pension risk transfer deal of its kind in Canada.

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 […]