longevity risk transfer

Lane Clark & Peacock LLP (LCP) have announced that they advised UK home and general merchandise retailed Home Retail Group in a £280m pensioner buy-in transaction for their pension scheme which saw them de-risk by transferring their liabilities to insurers.

Mercer have assisted in the completion of the latest pension scheme buyout transaction which saw the benefits of 3,500 pension plan members have their assets of around £100m transferred to Standard Life. The majority of the pension scheme belonging to British publisher and media company EMAP was transferred to Standard Life while the remainder were […]

CAMRADATA Analytical Services have announced the launch of a pension risk transfer product database aimed at U.S. defined benefit plans and sponsors. It aims to provide a transparent view of the insurance options available to allow pension schemes to transfer risks, including pension buy-in and buy-outs.

The market for longevity risk trading, which many say has huge potential, could use exchange traded funds (ETF’s) as a trading mechanism once the market has enough liquidity, according to this article from IPE.com. When that liquidity will come is a question that the subject of the article Deutsche Börse would like to have answered.

As longevity risk becomes increasingly recognised by pension schemes, life insurers and investors its development as an asset class is growing said experts at a recent conference. The UK has been leading the way in the development of longevity risk transfer techniques but interest is growing in the U.S. and around the world as those […]

Proponents of longevity risk transfer through instruments such as securitization via a catastrophe bond type structure (in a similar manner to Swiss Re’s Kortis Capital deal), or swaps, derivatives and hedging mechanisms, will be pleased to learn that this has now become a topic of discussion in China.

Yesterday, we wrote about the new report from Swiss Re which discusses the role of state governments in insurance and the role that insurance-linked securities have to play in financing the risks that they face. The report also discusses the longevity risk issue and the role that governments could play in helping to establish a […]

A new report published today by reinsurer Swiss Re says that the approaches currently taken to forecast longevity are inadequate and can lead to inaccuracies. The unprecedented increases in life expectancies experienced in recent decades have been consistently underestimated due to the use of inadequate methods for assessing future longevity. This leads to funding difficulties […]

Punter Southall, a UK based actuarial and investment consultant to many large UK pension schemes, has published a press release commenting on the recent ITV longevity swap transaction warning pension schemes of the sometimes limited nature of the risk transfer a longevity swap provides.

Pension Corporation continues to be one of the most active participants in the pension risk transfer and de-risking marketplace as they complete regular transactions with counterparties. Their latest transaction see’s them enter into a pension buyout agreement with Nova Chemicals UK Pension Plan (press release available here).