Prudential announces completion of its first longevity reinsurance transaction

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). “Plan sponsors face significant uncertainty and exposure to pension risk,” said read the full article →

Longevity risk remains major concern for pension scheme sponsors and trustees

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. The study read the full article →

Pension Corp. seeking UK£400m to grow pension risk transfer market

Pension Corporation, a UK insurer of pension plans and one of the largest players in the longevity risk transfer and pension de-risking markets, is seeking additional funding totalling UK£400m from an investment of fresh capital from Luxembourg based specialist investment fund Reinet. An announcement from Pension Corp. today says that they read the full article →

Prudential completes the first pension buy-in transaction in the U.S.

The market for pension scheme hedging, de-risking and pension risk transfer has taken another step forward as Prudential announced the completion of the first pension buy-in transaction in the United States. To date the pension risk transfer market has been more prevalent in Europe. Prudential's Portfolio protected Buy-in product was used read the full article →

Pension scheme de-risking volume set to grow

The volume of deals completed to de-risk pension schemes of their longevity and other risks looks set to grow according to a report from Hymans Robertson. Their Managing Pension Scheme Risk Report for Q1 2011 looks back at the deals done in the past quarter and ahead to the prospects read the full article →

London Stock Exchange transfers pension liabilities to Pension Corporation

The London Stock Exchange (LSE) has transferred a portion of its pensioner members liabilities to Pension Corporation (PIC) in a buy-in transaction which see's PIC insure all their current pension scheme members and automatically insure future pensioners for the next five years. The innovative deal effectively minimises the LSE's pension read the full article →

Buyouts more popular than longevity risk hedging, according to research

Research undertaken by MetLife Assurance shows that pension fund trustees looking to de-risk their pension schemes are more interested in bulk annuity buy-ins and buy-outs than longevity hedging and longevity swaps, says an article in Professional Pensions. Last year their study showed longevity risk hedging as the second most popular read the full article →

AEGON stresses need for longevity de-risking for pension plans

In a recent white paper titled 'Longevity and Pensions - protecting company pensions against longevity' AEGON argue that companies need to actively investigate the level of longevity risk their pension scheme faces and proactively de-risk themselves. They say that despite longevity being seen as a relatively new risk to pension read the full article →

£20 billion of pension scheme risk transfer deals likely by end of 2012

Hymans Robertson has published its Managing Pension Scheme Risk Report Q4 2010. In the report which looks at the state of the pension scheme risk management and risk transfer market they suggest that significant growth is likely over the next couple of years and beyond. Since the pension scheme risk transfer read the full article →

Will rise in UK pension scheme buy-outs lead to rise in capital markets longevity risk transfer?

The Financial Times reported yesterday that UK pension schemes are increasingly seeking to enter into agreements to transfer the risks associated with their pension funds over to insurance companies. The common ways of achieving this risk transfer are buy-outs which involve a whole pension scheme being passed over to an read the full article →