Metropolitan Tower Life Insurance Company, a wholly owned subsidiary of MetLife, Inc., will provide reinsurance to Pension Insurance Corporation (PIC) for longevity risk associated with roughly £280 million of pension liabilities.
This transaction signals MetLife’s entry into the UK longevity reinsurance marketplace and positions the firm as a reinsurance solution for direct insurers in the region.
Graham Cox, executive vice president and head of Retirement & Income Solutions at MetLife, commented: “This transaction marks an important milestone in MetLife’s strategy and gives us the opportunity to apply our experience managing risk to a new market.
“With this transaction, MetLife is establishing itself as a reinsurance solution for direct insurers in the U.K. While this is MetLife’s initial step into the U.K. longevity reinsurance market, our long history and mortality expertise position us well for the future.”
As noted by Cox, in 2019 alone there were over £40 billion of UK pension risk transfer deals completed. The market, says Cox, provides an opportunity for reinsurers to support direct insurers by managing their longevity exposure.
“We are pleased to be working with PIC and look forward to building on this relationship,” said Cox.
Khurram Khan, Head of Longevity Risk at PIC, added: “It’s great to see another well-rated, global corporation complete a debut transaction within the U.K. bulk annuity market. This is a positive development for both PIC and for market capacity as a whole.”