longevity

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.

The Chief Risk Officers (CRO) Forum, a professional group of chief risk officers and risk managers from large insurance and reinsurance companies, has published a position paper which advocates the capital markets becoming an active player in longevity risk transfer.

Kortis Capital Ltd., a Cayman Islands domiciled SPV, is to issue a series of longevity-linked insurance-linked securities (or catastrophe bonds) on behalf of cedent Swiss Re. This is the first cat bond type structure used to transfer longevity risks to the capital markets (we believe). Previously Swiss Re have been involved in cat bond transactions […]

The European Life Settlement Association (ELSA), who recently set up a regulatory committee, have now released a code of practice which aims to provide industry standards for its members to use which will help to protect investors in this market.

The Life & Longevity Markets Association (LLMA) has proposed a standardises framework for designing, building and producing longevity indices. The proposal aims to provide the longevity risk transfer market with a set of standards to facilitate easier longevity risk transfer transactions and increase transparency.

Pension fund sponsors and trustees don’t appear to be managing the longevity risks associated with their schemes on their own says MetLife Assurance. Despite the fact that there are estimated to be £1trillion of defined benefit liabilities in existence MetLife says that longevity is not being managed properly.

£1.9B worth of RSA Insurance Group plc pensioner liabilities have been reinsured in the largest to date pension buy-in transaction. Pacific Life Re has reinsured a significant proportion of the transaction featuring pensioner liabilities which are secured by Rothesay Life.

BMW has now completed its deal (which we wrote about previously here) to offload the longevity risks of its group pension liabilities. The transaction which saw £3b of BMW’s pension liabilities transferred to Deutsche Bank is the biggest corporate longevity risk transfer on record and (as the FT reports) has doubled the size of the […]

Two more major companies are planning to transfer some of their pension fund risks through longevity swaps in the coming weeks. Longevity risk transfer is becoming a really popular and much more accepted way to take some of the risk out of your pension scheme and enable you to plan your cash flow better and […]

The market for life insurance securitization and longevity risk trading has now got a champion to help it grow and mature. The Life and Longevity Markets Association has been founded ‘as a not-for-profit venture in order to promote a liquid traded market in longevity and mortality-related risk’.