longevity risk transfer

Global reinsurance giant Swiss Re has provided capacity to support a UK £3.7 billion longevity swap deal that uses a cell structure to intermediate the risk transfer for the ICL Group Pension Plan, one of the pension schemes of Fujitsu in the UK.

Prudential Financial Inc. and insurer Zurich have worked together to provide an unknown UK pension scheme with a £6 billion longevity swap and reinsurance arrangement.

The recent £3 billion longevity swap between the AXA UK Group Pension Scheme and reinsurance firm Hannover Re represented a new first for the longevity risk transfer market, a largely non-pensioner deal, which analysts at Jefferies highlight as a win-win transaction for both parties.

Canada Life Reinsurance has taken EUR 4.7 billion of long-term longevity risk off the hands of life and annuities focused insurer Athora’s European arm in a recent longevity reinsurance arrangement.

The AXA UK Group Pension Scheme has entered into a £3 billion longevity swap with reinsurance firm Hannover Re, in a new first for the longevity risk transfer market, a largely non-pensioner deal.

France-headquartered global reinsurance firm SCOR has put in place a sidecar-like, quota share retrocession vehicle named Mangrove Insurance PCC Limited through which it transfers some of its longevity risk to third-party investors.

MetLife, Inc., one of the largest life and annuities insurance groups in the world, has announced that it completed two more UK based longevity reinsurance transactions with pensions insurance specialist Rothesay Life, covering $5 billion of risk.

Hymans Robertson LLP, the pensions and financial services consultants, is anticipating more non-traditional risk transfer for pensions, including through the use of capital backed solutions and alternative insurance products.

Hymans Robertson LLP, the pensions and financial services consultants, expects that longevity risk transfer activity will remain high in the United Kingdom across the coming decade, with as much as UK £250 billion of longevity swaps likely to be transacted by 2031.

Longevity swap pricing is expected to remain attractive through the coming year, as reinsurance capital to support large pension risk transfer deals remains abundant and slower mortality improvements feed into reinsurance pricing, according to Willis Towers Watson (WTW).