longevity risk transfer

The London Stock Exchange (LSE) has transferred a portion of its pensioner members liabilities to Pension Corporation (PIC) in a buy-in transaction which see’s PIC insure all their current pension scheme members and automatically insure future pensioners for the next five years. The innovative deal effectively minimises the LSE’s pension risks over a fixed term […]

Dutch based insurer Aegon reported first quarter profits were down 12% as it posted lower investment returns, was hit by administrative charges in the UK and set aside funds to manage increasing life expectancy risk in the Netherlands. Aegon have had to increase provisioning for longevity risks as increased life expectancy threatens many life and […]

Research undertaken by MetLife Assurance shows that pension fund trustees looking to de-risk their pension schemes are more interested in bulk annuity buy-ins and buy-outs than longevity hedging and longevity swaps, says an article in Professional Pensions. Last year their study showed longevity risk hedging as the second most popular de-risking strategy, this year it […]

The Life & Longevity Markets Association (LLMA) announced a milestone in their plans for the development of a market in tradeable longevity and mortality risk instruments yesterday with the news that they were to take ownership of the LifeMetrics Index which was created by J.P. Morgan.

The Life & Longevity Markets Association (LLMA), a not for profit association dedicated to promoting liquidity in the traded longevity and mortality risk markets, has announced their latest member reinsurer Munich Re. The largest reinsurer in the world takes membership of the LLMA to 12 they said yesterday.

In a recent white paper titled ‘Longevity and Pensions – protecting company pensions against longevity’ AEGON argue that companies need to actively investigate the level of longevity risk their pension scheme faces and proactively de-risk themselves. They say that despite longevity being seen as a relatively new risk to pension schemes there are now a […]

We’ve written a few times about the potential for insurance-linked securities and catastrophe bond type risk transfer transactions to be recognised under the new Solvency II regime as forms of capital relief (find one of our previous articles here). The reduction in risk they offer could be recognised in Solvency II calculations if that received […]

Hymans Robertson has published its Managing Pension Scheme Risk Report Q4 2010. In the report which looks at the state of the pension scheme risk management and risk transfer market they suggest that significant growth is likely over the next couple of years and beyond.

The Financial Times reported yesterday that UK pension schemes are increasingly seeking to enter into agreements to transfer the risks associated with their pension funds over to insurance companies. The common ways of achieving this risk transfer are buy-outs which involve a whole pension scheme being passed over to an insurer and buy-ins where an […]

The European Life Settlement Association (ELSA) has issued a press release to announce the results of the election of officers at its Annual General Meeting. The ELSA sets standards for the European life settlement industry and promotes transparency by providing accurate, authoritative information to retail and institutional investors.