Longevity swap news

The £7 billion longevity swap and reinsurance transaction that Prudential Financial, Inc. completed recently for the HSBC Bank UK pension scheme is the second largest such arrangement in longevity risk transfer market history.

The UK pension scheme of HSBC Bank has entered into a longevity swap transaction covering £7 billion of its liabilities with The Prudential Insurance Company of America (PICA), part of Prudential Financial, Inc.

Prudential said it has added a new longevity reinsurance arrangement, adding Europe and UK focused pension insurance, buy-in and buy-out specialist The Phoenix Group as a counterparty.

Pension Insurance Corporation plc, a specialist defined benefit pension fund insurer, said it has increased its use of longevity reinsurance and notes that market capacity is on the rise for deferred pension risks, while standardisation of the transactions is increasing.

The largest bulk-annuity deal in the UK has been completed by Legal & General and the transaction saw aerospace and engineering firm Rolls-Royce’s pensioner bespoke longevity swap restructured as part of the arrangement.

London-based Pension Insurance Corp. (PIC) has again increased the volume of longevity reinsurance it is using, as the firm announced participating in another buy-in, this time for the Marks & Spencer pension fund.

PartnerRe has expanded on its recent longevity reinsurance transaction with Canadian insurer Manulife, growing the protection provided to cover around 30,000 annuitants.

As the longevity risk transfer market continues down its impressive growth path, Amy Kessler, Head of the Longevity Risk Transfer at Prudential Financial, Inc. of the U.S., believes there is room for capital markets solutions to play a role.

Prudential Retirement, part of Prudential Financial, Inc., says that the UK pension risk transfer market hass experienced a rush to finalise de-risking deals in advance of Brexit, evidenced by its closing of a further $2.6 billion of longevity reinsurance transactions at the start of 2019.

Bermuda headquartered global reinsurance firm PartnerRe announced today that it has provided reinsurance to cover longevity risks associated with 25,000 annuitants for Canadian insurer Manulife.