longevity risk

With an ageing population, slowing birth rate and an increasing rise in life expectancy as well as impending accounting standards which will encourage the need to show their capital adequacy, Japanese insurers and pension schemes are expected to face growing longevity risks in the coming years, according to this article in Life & Pension Risk […]

Interesting news in the longevity swap and longevity risk transfer market today as Deutsche Börse and the longevity analytics arm of Hymans Robertson, Club Vita, announce the launch on Friday of the Xpect – Club Vita Indices. This new series of longevity indices aim to offer UK pension schemes an index-based alternative which they say […]

Risk Management Solutions (RMS) have announced that they conducted mortality and longevity risk analysis for the recently completed €12 billion longevity swap involving Aegon and Deutsche Bank. As we wrote on Friday here, the record-breaking longevity risk transfer transaction saw Aegon offload €12 billion of their Netherlands longevity risk to Deutsche Bank, who in turn […]

The largest publicly reported longevity swap (that we’re aware of) has been announced today between Aegon and investment bank Deutsche Bank. The €12 billion deal see’s Aegon partially offset the risk of future increases in the Netherlands and they say that as a result of this capital markets longevity swap transaction as much as a […]

Prudential Financial have announced their first longevity reinsurance transaction of 2012. The deal see’s Prudential Retirement reinsure Goldman Sachs subsidiary Rothesay Life, covering the longevity related pension liabilities almost 20,000 members of the Uniq plc Pension Scheme who are insured by Rothesay through a buy-in transaction. The longevity reinsurance covers pension liability values of $665m […]

Aon Hewitt have announced that they acted as the lead advisor on the recently closed Pilkington longevity swap transaction, which we wrote about earlier today here. The deal saw UK insurer Legal & General enter into a £1 billion longevity swap with the Pilkington Superannuation Scheme, L&G then offloaded the risk through a longevity reinsurance […]

Reinsurer Hannover Re have announced the completion of a longevity swap transaction which see’s them assume around £1 billion of longevity risks associated with a portfolio of pension obligations held by UK insurer Legal & General. The portfolio involves the pension obligations of around 11,500 employees of UK industrial firm Pilkington who are all actively […]

Prudential Financial have announced that they have participated as a reinsurer in the recent longevity transaction between Rolls-Royce and Deutsche Bank. The transaction saw Rolls-Royce offload some £3 billion of its pension liabilities in a longevity swap deal with Deutsche Bank. The longevity risk has in turn been passed on to a group of reinsurers, […]

Aerospace and engineering firm Rolls-Royce has announced the completion of a longevity swap transaction completed to give additional security to the members of its final salary pension scheme. In a longevity swap contract with Deutsche Bank, Rolls-Royce have offloaded some £3 billion worth of pension liabilities, covering some 37,000 pensioners.

2011 could be a record year for pension scheme risk transfer deals as the desire to de-risk or offload risks including longevity grows among pension fund managers. So far 2011 has seen significant volumes in the pension buy-in and buy-out arena and also longevity swaps. By the end of 2011 pension consultants Hymans Robertson expect […]