The Metropolitan Tower Life Insurance Company has completed two longevity reinsurance transactions with Phoenix Group.
The transactions, completed at the end of last year, dictate that the insurer will provide reinsurance to Phoenix for longevity risk associated with approximately $2.4 billion of U.K. pension liabilities.
Jay Wang, senior vice president and head of risk solutions for MetLife’s Retirement & Income Solutions business, said: “We are pleased to have completed our first two longevity reinsurance transactions with Phoenix and to support Phoenix in its U.K. pension de-risking activity. Despite the continuing uncertainty around the pandemic, the U.K. pension and longevity risk transfer markets remains resilient, and we are excited to continue to grow our presence in this space.”
Two weeks ago, Phoenix Group were on these pages when it announced it had completed four Bulk Purchase Annuity (BPA) transactions during the second half of 2021, covering £4.0bn of premiums.
These transactions also comprised of £3.6bn of external deals and a further £0.4bn tranche of the group’s Pearl Pension Scheme, equating to BPA premiums of £5.5bn contracted for the year.
MetLife, meanwhile, completed its first UK longevity swap of a UK pension scheme’s liabilities a week ago. That 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.
