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MetLife expands in UK longevity market with $5bn Rothesay transactions

26th February 2021 - Author: Luke Gallin

Metropolitan Tower Life Insurance Company, a subsidiary of financial services company MetLife, Inc., has announced the completion of two longevity reinsurance transactions with Rothesay Life Plc.

Longevity imageAfter entering the UK longevity reinsurance market in June of last year via an arrangement with Pension Insurance Corporation (PIC), MetLife subsequently completed a $320 million transaction with Rothesay in late October.

Now, the inaugural deal between the pair has been followed up with a second and third longevity reinsurance transaction.

The arrangements see MetLife’s subsidiary reinsure approximately $5 billion of pension liabilities associated with two UK bulk annuity transactions completed in Q4 2020.

Jay Wang, Senior Vice President (SVP) and Head of Risk Solutions for MetLife’s Retirement & Income Solutions business, commented: “We are pleased to expand our relationship with Rothesay and build on our previous success to execute the latest two transactions very quickly and efficiently.

RMS

“With these transactions, we will continue to execute on our strategy, using our actuarial expertise and history managing longevity risk to expand our footprint within the U.K. longevity reinsurance market.

“Despite the pandemic, the U.K. pension and longevity risk transfer market remains remarkably resilient and robust, offering opportunities for MetLife to continue to support direct insurers and pension schemes in the U.K. on hedging longevity risk.

“We look forward to further strengthening our relationship with Rothesay and supporting the business in its de-risking activity.”

David Cox, Co-Head of Pricing and Reinsurance at Rothesay Life, added: “We are pleased to continue to grow our relationship with MetLife through these longevity reinsurance agreements. As a business purpose-built to protect pensions, strong reinsurance partnerships help us to deliver the long-term security we provide for policyholders.”

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