Reinsurance News
Longevity reinsurance
Longevity reinsurance is typically used to transfer the financial risk that cohorts of pensioners or annuitants live longer than expected from an insurer or pension scheme to a reinsurer.
Longevity reinsurance is often arranged as indexed arrangements, or in longevity swap formats, as well as through indemnity coverage.
Read our longevity reinsurance news below.
Hannover Re reinsures £800m Zurich, FTSE 100 longevity swap
17th December 2019
Hannover Re has acted as the primary reinsurer for a £800 million longevity swap transaction between Zurich and a FTSE100 pension scheme. With Hymans Robertson leading the advice on the deal alongside legal transactional counsel CMS, a new and efficient structure was negotiated to meet the requirements of the scheme. The transaction ... Read the full article
HSBC UK pension completes £7bn longevity swap with Prudential
6th August 2019
The Prudential Insurance Company of America (PICA), a subsidiary of Prudential Financial, Inc., has completed a longevity swap transaction with the HSBC Bank (UK) Pension Scheme. The longevity swap is the second largest transaction ever completed for a UK pension scheme, and concerns the longevity risk in relation to c£7 billion ... Read the full article
Prudential & Phoenix enter inaugural longevity reinsurance agreement
2nd August 2019
The Prudential Insurance Company of America (PICA), a subsidiary of Prudential Financial, Inc. (PFI), has entered into an inaugural longevity reinsurance arrangement with pension insurer, The Phoenix Group covering U.K. retirees. PICA has been very active in the global pension de-risking, or longevity re/insurance market since the launch of its longevity ... Read the full article
Longevity risk data provider Club Vita expands into U.S
28th June 2019
Club Vita, a UK-based provider of longevity risk data, has announced that it plans to expand into the U.S market. Having successfully launched in Canada in 2015, Club Vita will now aim to extend its longevity data analytics service to American pension plans and insurers. The company uses ZIP codes and other ... Read the full article
Record £7 billion of longevity risk reinsured by PIC in 2019
24th June 2019
Pension Insurance Corporation (PIC) has completed £5.8 billion (USD 7.4 billion) of pension buy-ins and buyouts and has reinsured a record £7 billion (USD 8.9 billion) of longevity risk so far in 2019. The specialist insurer of defined benefit pension funds has highlighted a very active year for the pension risk ... Read the full article
PartnerRe strikes second longevity reinsurance deal with Manulife
14th May 2019
Bermudian reinsurer PartnerRe has completed a second deal with The Manufacturers Life Insurance Company (Manulife) to reinsure longevity risk for an in-force block of Canadian individual payout annuities. The announcement follows an earlier transaction with Manulife this year, which saw PartnerRe reinsure the longevity risk of roughly 25,000 annuitants. The new ... Read the full article
Bright spots exist but overall, longevity market has more to do on efficiency: Kessler, Prudential
26th April 2019
In certain instances, the efficient management of longevity risk transactions does exist, but as a whole, the marketplace has more work to do throughout the process, from start to finish. This is according to the Head of the Longevity Risk Transfer at Prudential Financial, Inc. in the U.S., Amy Kessler, who ... Read the full article
Prudential completes $2.6bn in longevity reinsurance contracts
24th April 2019
Prudential Retirement has completed approximately $2.6 billion in previously undisclosed longevity reinsurance contracts, assuming the longevity risks of roughly 16,000 pensioners. A division of Prudential Financial, Inc., Prudential Retirement provides retirement plan solutions for public, private, and non-profit organisations. The closing of roughly $2.6 billion in longevity reinsurance agreements highlights the unprecedented ... Read the full article
Favourable conditions suggest record-breaking year ahead for longevity risk transfer: Kessler, Prudential
27th March 2019
Pension funds are continuing to take advantage of favourable longevity risk transfer conditions, and it’s expected that 2019 will be another record breaking year for the market, according to Amy Kessler, Head of the Longevity Risk Transfer, Prudential Financial Inc. of the U.S. Pension funds across the UK, U.S. and Canada ... Read the full article
Canada Life Re enters long-term longevity reinsurance agreement with VIVAT
6th March 2019
Canada Life Reinsurance has entered into a long-term longevity reinsurance agreement with VIVAT covering 70% of €8 billion (€5.5bn) of in-force liabilities. Subsequently, over 150,000 of in-payment and deferred pensioners are reinsured by Canada Life under the agreement. "I am pleased to announce this significant reinsurance transaction, which highlights our strength in ... Read the full article
Munich Re closes longevity swap deal with Lafarge pension scheme
18th February 2019
German reinsurer Munich Re has completed a longevity swap deal with the Trustee of Lafarge UK Pension Plan, the UK pension scheme of French industrial company Lafarge. The arrangement is intended to reduce the Plan’s exposure to longevity risk, which arises when pensioners live longer than expected and thus claim more ... Read the full article
RGA strikes deal with Manulife to reinsure longevity risk of 45,000 annuitants
14th February 2019
RGA Life Reinsurance Company of Canada (RGA Canada), a subsidiary of global life and health reinsurer RGA, has announced the completion of a transaction with The Manufacturers Life Insurance Company (Manulife) that will see it reinsure longevity risk from an in-force block of Canadian group payout annuities. In aggregate, RGA Canada ... Read the full article
Prudential Financial closes $3.2bn in new longevity reinsurance agreements
18th October 2018
Prudential Retirement, a subsidiary of Prudential Financial, Inc., has concluded $3.2 billion in previously undisclosed longevity reinsurance contracts. As part of these transactions, The Prudential Insurance Company of America (PICA) will assume the longevity risk for approximately 13,200 retirees. Prudential said that the conclusion of this deal reflects the rapid expansion of ... Read the full article
L&G in £300mn longevity insurance deal, 100% reinsured by SCOR
22nd August 2018
Legal & General (L&G) has announced the completion of its first streamlined longevity transaction, covering approximately £300 million (US$387mn) of liabilities of an unnamed mid-tier pension scheme. The deal is L&G's first entry in the longevity insurance market for smaller schemes. According to L&G, to date, longevity swap deals have been ... Read the full article
Prudential takes on $1.4bn of pension longevity risk from Aviva
8th August 2018
Prudential Retirement, part of Prudential Financial, has reinsured longevity risk for approximately £1 billion (nearly $1.4 billion) in pension liabilities from Aviva Life and Pensions, the first such transaction between the two companies. The deal comes amid a rising appetite for de-risking in the U.K as attractive pricing and enhanced capacity ... Read the full article
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