longevity

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’.

A very interesting press release arrived in my email inbox this evening announcing and innovative transaction in the Regulation XXX arena that has just been completed. Karson Management, a company formed by well known industry experts has set up a specialist alternative collateral provider to provide collateral to insurance and reinsurance companies, Lloyd’s members and […]

In a first for longevity risk Centurion Fund Managers have launched a new fund which is the first in the market to include macro and micro longevity. By combining these two aspects the fund allows investors to better diversify their portfolios of life insurance linked securitization and products.

The market for trading and securitization of longevity risks has never really taken off as much as we initially thought it would. Most market participants have been waiting for capital to flood in as companies and pension fund managers discovered how easily they could hedge the risk of longevity amongst the members of pension schemes. […]

Swiss Re have now completed their latest life insurance securitization, Vita Capital IV Ltd. The mortality bond transaction provides Swiss Re with $75m of cover against severe population mortality in the U.S. or the UK. The deal covers a five-year risk period ending in 2014. The notes issued by Vita Capital have been rated ‘BB+’ […]

Various sources are reporting that Swiss Re is preparing to launch a fourth excess mortality transaction under its Vita series. Vita Capital IV is said to be a $75m mortality bond, it started as $50m but demand has been high and the deal has upsized significantly. It’s assumed that Vita Capital IV will replace a […]

We last reported on Genworth and its River Lake transactions back in July at which time River Lake transactions were being reviewed for credit worthiness. Now Moody’s reports that it has withdrawn all ratings on certain Genworth sponsored and MBIA Insurance Corporation backed life insurance-linked securitizations. River Lake I, II, IV and Rivermont are all […]

Here’s some interesting reading for a Monday morning. Pension Corporation has joined the Pension Institute (who asked this question previously) in urging the British government to issue longevity linked bonds to help pension schemes and insurers manage the risks associated with increasing life expectancy of the British population. The fact that the population are living […]

Axis Capital, the Bermudian reinsurer, has announced in its preliminary third-quarter results that it expects to lose around $136m due to a longevity risk derivative contract. The final loss will be unveiled in the reinsurers official third-quarter results filing. The derivative contract doesn’t expire until 2017 but Axis will have to carry those losses on […]

Babcock International Group, a leading UK based engineering support services company, has enacted a longevity swap to help it hedge the risks of longer life expectancies associated with it’s pension scheme. In doing so it has become the first UK company pension scheme to enter the longevity swap market. Credit Suisse have acted as the […]