A subsidiary of financial services company MetLife, Inc., Metropolitan Tower Life Insurance Company, has completed a UK longevity reinsurance transaction with Rothesay Life plc.
Under the terms of the arrangement, the MetLife subsidiary will provide reinsurance coverage to Rothesay for the longevity risk associated with roughly $320 million of pension liabilities.
Graham Cox, executive vice president and head of Retirement & Income Solutions at MetLife, commented: “Reinsurance solutions play an important role in direct insurers’ ability to secure the retirement benefits of U.K. pensioners. This transaction gives MetLife the opportunity to use our mortality expertise and supports Rothesay in its pension de-risking activity.
“We look forward to building our relationship with Rothesay, a leading direct insurer in the U.K. pension de-risking market. This transaction grows our book of business in the U.K. longevity reinsurance market and continues to build on our long history of risk management expertise in this space.”
This transaction with Rothesay comes after MetLife’s initial entry into the UK longevity reinsurance market back in June.
Tom Pearce, Managing Director, Rothesay, added: “We are delighted to have executed a longevity reinsurance agreement with Metropolitan Tower Life for the first time. A deep and diverse pool of reinsurance capital helps the UK de-risking market to grow and supports the long-term security we provide for pensions.”