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.
Longevity risk transfer activity to grow in the UK and beyond: Prudential’s Kessler
14th November 2017
The longevity reinsurance and risk transfer market in the UK is expected to be active in 2018 after a period of uncertainty following the Brexit vote, and markets around the world are expected to adopt the UK's de-risking techniques, and take advantage of the efficient cost of transferring longevity risks, ... Read the full article
International Paper transfers $1.3bn in pension obligations to Prudential
5th October 2017
A new pension risk transfer agreement has been reached between International Paper and The Prudential Insurance Company of America, which sees the former purchase a group annuity contract to settle roughly $1.3 billion of its pension obligations. Under the agreement, Prudential is transferred the pension obligations of approximately 45,000 of International ... Read the full article
Zurich Assurance adopts the RMS Longevity Model to improve view of risk
4th October 2017
Global catastrophe risk modeller RMS' Longevity Model has been adopted by UK life insurer, Zurich Assurance Ltd., as the firm seeks to better understand its view of longevity risk. Zurich Assurance is a division of global insurer Zurich Insurance Group, and, according to a recent announcement has licensed the RMS Longevity ... Read the full article
Canada Life Re & PICA in £3.4bn longevity transfer with MMC UK Pension Fund
14th September 2017
The Marsh & McLennan Companies (MMC) UK Pension Fund has entered into a £3.4 billion ($4.5bn) longevity reinsurance agreement with Canada Life Reinsurance and The Prudential Insurance Company of America (PICA), which covers the liabilities of around 7,500 pensioner members. The transaction is the first longevity risk transfer to be completed ... Read the full article
Finance executives highlight pension risk transfer drivers
29th August 2017
Increasing premiums to the Pension Benefit Guaranty Corp. (PBGC), combined with asset-related volatility and increasing life expectancies are amongst the top reasons finance executives transfer pension exposure to an insurer, according to a new survey by CFO Research and Prudential Financial, Inc. A new survey including the responses of 80 senior finance executives at ... Read the full article
Life reinsurers’ strong risk management to assist emerging market growth: S&P
22nd August 2017
Advanced and strong risk management and underwriting capabilities will support reinsurers as they navigate the challenges of the expanding life reinsurance industry in emerging markets, according to ratings agency, Standard & Poor's (S&P). S&P expects emerging life insurance markets to drive the expansion of the global life reinsurance sector in ... Read the full article
Hymans Robertson appoints Richard Purcell to Technical & Innovation Lead
17th August 2017
Actuarial and advisory consultancy Hymans Robertson, which deals with longevity risk transfer and longevity reinsurance or swap transactions, has appointed Richard Purcell to the role of Technical and Innovation Lead within its Life and Financial Services practice. Emma McWilliam, Head of Life and Financial Services at Hymans Robertson, welcomed Purcell to ... Read the full article
Global life reinsurance industry poised for continued growth momentum: S&P
8th August 2017
Global ratings agency Standard & Poor's (S&P) expects emerging life insurance regions, such as the Asia-Pacific, and continued growth in the longevity risk transfer space to drive the expansion of the international life reinsurance sector. Over the last three years S&P has observed strong growth momentum in the longevity risk transfer space, ... Read the full article
More positives than negatives in life reinsurance: S&P
4th August 2017
The outlook for the global life reinsurance sector is "promising" through 2019 as opportunities in the space outweigh a string of persistent market challenges, especially when compared with the property and casualty (P&C) space, according to Standard & Poor's (S&P). "Despite prevailing low interest rates, fierce competition in the sector's ... Read the full article
SCOR & PIC enter £1 billion longevity reinsurance swap
12th July 2017
Pension Insurance Corporation plc (PIC) has entered into a £1 billion (US$1.28bn) longevity reinsurance transaction with French reinsurer SCOR, meaning the insurer has now reinsured over 70% of its overall longevity risk. In a statement, PIC explains the new reinsurance agreement covers the longevity exposure of roughly 7,000 in-payment lives and ... Read the full article
Longevity reinsurance market pricing back on track in H2 2017: Aon
7th July 2017
Reinsurers have adjusted pricing to match the recent changes in UK mortality rates, after the market experienced pricing dislocation last year, according to insurance and reinsurance broker, Aon. Longevity market pricing is now back on track after a period of dislocation when longevity reinsurers were slow to adjust pricing to reflect ... Read the full article
SCOR reinsures Zurich’s longevity swap for Skanska pension fund
3rd July 2017
Zurich Assurance has signed a longevity hedge swap with Skanska Construction Services Trustee covering £300 million of liabilities, with Mercer acting as lead advisor to the trustee on the deal. 75% of the longevity hedge was reinsured by SCOR, with Zurich retaining the rest. Jim Sykes, Chief Executive Officer (CEO) of Zurich ... Read the full article
SCOR expands EMEA longevity risk capabilities with new appointment
6th June 2017
French insurer and reinsurer SCOR has announced the appointment of seasoned longevity risk transfer executive, Wolfgang Murmann, as its new Head of Longevity for Europe, the Middle East and Africa (EMEA). The appointment of Murmann, who has a solid track record in longevity risk transfer markets and joins from asset management firm, Insight Investment, will enable ... Read the full article
New mortality assumptions not a blip, benefits will take time to materialise: RBC
21st April 2017
The continued trend of lower than expected mortality improvements, underlined by the 2016 version of the UK mortality tables (CMI_2016), suggests that the mortality rate trend highlighted by CMI_2015 is not a blip, and that it might take some time for changes to filter through the industry, says RBC Capital Markets. In March ... Read the full article
Prudential & Rothesay Life in $1.2bn longevity reinsurance deal
10th March 2017
Prudential Financial has completed its sixth major longevity reinsurance transaction with Rothesay Life since 2011, announcing a $1.2 billion (£960 million) deal covering the liabilities associated with 22,500 pensioners, from eight pension plans. The latest longevity reinsurance transaction between the pair sees Prudential Retirement, a unit of Prudential Financial, assume the ... Read the full article
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