pension scheme de-risking

The Canadian Wheat Board (CWB) has entered into a $150m transaction with Sun Life Assurance Company of Canada, a subsidiary of Sun Life Financial Inc., to transfer investment and longevity risk from CWB’s defined benefit pension plan to Sun Life. It is the first inflation-linked pension risk transfer deal of its kind in Canada.

2011 could be a record year for pension scheme risk transfer deals as the desire to de-risk or offload risks including longevity grows among pension fund managers. So far 2011 has seen significant volumes in the pension buy-in and buy-out arena and also longevity swaps. By the end of 2011 pension consultants Hymans Robertson expect […]

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.

Mercer have assisted in the completion of the latest pension scheme buyout transaction which saw the benefits of 3,500 pension plan members have their assets of around £100m transferred to Standard Life. The majority of the pension scheme belonging to British publisher and media company EMAP was transferred to Standard Life while the remainder were […]

CAMRADATA Analytical Services have announced the launch of a pension risk transfer product database aimed at U.S. defined benefit plans and sponsors. It aims to provide a transparent view of the insurance options available to allow pension schemes to transfer risks, including pension buy-in and buy-outs.

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 around the world as those […]

Pension Corporation continues to be one of the most active participants in the pension risk transfer and de-risking marketplace as they complete regular transactions with counterparties. Their latest transaction see’s them enter into a pension buyout agreement with Nova Chemicals UK Pension Plan (press release available here).

Pension Corporation have entered into another deal which see’s them take on the assets and liabilities of a UK pension scheme. The latest transaction see’s Pension Corporation take on over £60m of pension liabilities from manufacturer Toray Textiles.

Prudential Retirement has announced the completion of its first longevity reinsurance transaction. The transaction sees Prudential provide reinsurance to UK based Rothesay Life, a subsidiary of Goldman Sachs, covering pension account longevity risks to a value of UK£100m (approx $160m).

For pension scheme sponsors and trustees longevity risk, the risk associated with pensioners living longer resulting in pension schemes paying them for longer than expected, remains a major concern and one that has increased in importance to them in the past year, according to a study by MetLife Assurance.