longevity risk

The life settlements investment market has had some criticism over the last few months after regulators comments and the introduction of a new code of practice from the European Life Settlement Association (ELSA) drew attention to the asset class. Now PDL International is seeking to address those concerns.

Hymans Robertson LLP, the pensions actuarial consultancy, has predicted a buoyant pension scheme risk transfer market for the 4th quarter of 2010 and into 2011. In a report published last week Hymans Robertson they said they expect to see a quarter of FTSE 100 companies enter into a material pension scheme risk transfer deal by […]

Goldman Sachs has been involved in an interesting structured finance transaction recently. Through its special purpose vehicle, the Cayman Islands based, Signum Finance Cayman Ltd. Goldman Sachs has issue $200m of Series 2010-09 notes designed to provide it with a mortality hedge for a defined block of life insurance.

Press release from Conning Research: –Conning 2009 estimate: $8 billion of life insurance face values settled –Estimated cumulative in-force amount still grew 16%

The results of a survey undertaken by Lucida, an insurance company focused on annuity and longevity risk business, seem to show that pension funds worries about longevity risks are decreasing and their appetite to use longevity swaps to transfer their risks is lower than last year.

Longevity hedging and longevity risk transfer is a growing market with new products and methodologies springing up all the time. So far a lot of interest has been related to pension funds and the risks of their members living longer but there is also growing interest amongst investors in life insurance who want to hedge […]

The European Life Settlement Association (ELSA) has formed a regulatory committee to work closely with various European agencies to ensure that regulations that are developed protect investors in life settlements and to lobby for the sectors interests.

The Pension Protection Fund (PPF), which takes on the pension liabilities of companies which fold has formed a partnership with Club Vita, a provider of analytical services to help pension funds understand and manage their longevity risk.

As the market for risk transfer and hedging of pension liabilities grows this year, news comes from Aon that the liabilities and obligations of UK companies to their pension funds have hit all time highs.

Pension Insurance Corporation (PIC) has entered into an agreement with Alliance Boots to insure the Alliance Unichem UK group pension scheme. The buyout means that PIC now looks after the pensions of 3,000 members.