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LCP advises Home Retail Group in pension scheme risk transfer deal

Lane Clark & Peacock LLP (LCP) have announced that they advised UK home and general merchandise retailed Home Retail Group in a £280m pensioner buy-in transaction for their pension scheme which saw them de-risk by transferring their liabilities to insurers.This buy-in transaction is notable, say LCP, as it is the read the full article →

Exchange traded funds for trading longevity risk?

The market for longevity risk trading, which many say has huge potential, could use exchange traded funds (ETF's) as a trading mechanism once the market has enough liquidity, according to this article from IPE.com. When that liquidity will come is a question that the subject of the article Deutsche Börse read the full article →

Longevity; a growing asset class say experts

As longevity risk becomes increasingly recognised by pension schemes, life insurers and investors its development as an asset class is growing said experts at a recent conference. The UK has been leading the way in the development of longevity risk transfer techniques but interest is growing in the U.S. and read the full article →

Aging populations and longevity risk transfer through securitization topical in China

Proponents of longevity risk transfer through instruments such as securitization via a catastrophe bond type structure (in a similar manner to Swiss Re's Kortis Capital deal), or swaps, derivatives and hedging mechanisms, will be pleased to learn that this has now become a topic of discussion in China.Usually thought to read the full article →

Shrinking life reinsurance market to stimulate risk transfer

A new report published by ratings agency Standard & Poor's suggests that the traditional life reinsurance market has been shrinking since 2003 and now participants in this market are seeking new, non-traditional ways to stimulate growth. Another trend which is leading S&P to suggest that non-traditional risk transfer could see read the full article →

Lack of a reference price hinders longevity risk market

Yesterday, we wrote about the new report from Swiss Re which discusses the role of state governments in insurance and the role that insurance-linked securities have to play in financing the risks that they face. The report also discusses the longevity risk issue and the role that governments could play read the full article →

Longevity risk; a 4,000 pound gorilla destined for the capital markets

To date there has only been a single insurance-linked security transaction which transferred the risk of policyholders living longer, or longevity risk, to the capital markets. That transaction, Kortis Capital Ltd. which was sponsored by Swiss Re, successfully came to market in December 2010 but so far no-one else has read the full article →

KPMG says pension buy-ins could be more difficult to price under Solvency II

KPMG reports today in a press release that the volume of pension buy-in deals in the UK has reached over £3 billion in the past year. Buy-ins see pension funds transfer some of their liabilities to the insurance market often with the sole purpose of offloading the longevity risk which read the full article →

Longevity hedging for all

An Aon Hewitt executive told Professional Pensions that even small pension schemes should consider hedging their longevity risks or entering into longevity risk transfer transactions. To date, longevity risk transfer transactions have been large affairs with schemes worth billions involved, but the Aon Hewitt representative suggests that could change.As the read the full article →

Swiss Re closes Admin Re transaction in the UK with American Life Insurance Company

Swiss Re has announced its latest bulk purchase of life insurance policies under their Admin Re® series of transactions. The latest deal see's them acquire approximately 300,000 policies and UK£1.6 billion in assets from American Life Insurance Company.Swiss Re have now completed more than 50 transactions globally with Admin Re read the full article →