Metropolitan Tower Life Insurance Company has completed its first longevity swap of UK pension scheme liabilities.
The transaction, which went through in Q4 2021, means that company—a subsidiary of MetLife—will provide reinsurance for longevity risk associated with $3.5bn of pension liabilities.
The lead adviser on the deal was Aon, while the intermediary was Zurich Assurance.
In a statement, Jay Wang, senior vice president and head of risk solutions for the retirement and income solutions business within MetLife, said: “We are pleased MetLife has been selected to reinsure these obligations. As MetLife’s first pension scheme longevity swap transaction, this marks an important milestone in the evolution of our U.K. longevity reinsurance business and highlights MetLife’s focus on innovation to meet the customers’ needs.”
The announcement from MetLife echoes news from last February when the company expanded into the UK longevity market through a $5bn Rothesay transaction.
Under the terms of another arrangement with Rothesay, the MetLife subsidiary was to provide reinsurance coverage to Rothesay for the longevity risk associated with roughly $320m of pension liabilities.