Reinsurance News
pension risk transfer
Pension risk transfer news and analysis can be found here. The pension risk transfer market sees financial risks associated with defined benefit pension plans transferred from the sponsoring employer or pension scheme to a third party, typically an insurance or reinsurance company.
Read our pension risk transfer news below.
L&G completes £261mn of pension risk transfer deals in March
2nd April 2020
UK insurer Legal & General Group plc (L&G) has revealed that its Pension Risk Transfer (PRT) division completed eight transactions over the past month, securing a combined £261 million of pensioners' benefits during uncertain times. The eight transactions cover UK and U.S. pension schemes and varied in size from as low ... Read the full article
Athene secures pension buyout with Armstrong World Industries
26th February 2020
Retirement services firm Athene Holding has announced a pension buyout agreement with Armstrong World Industries, a US manufacturing company. Under the terms of the transaction, three of Athene’s life insurance subsidiaries will provide annuity benefits for approximately 10,000 retirees who are currently receiving benefits from Armstrong’s pension plan. In aggregate, Armstrong is ... Read the full article
Prudential discloses $6bn longevity reinsurance deals with Rothesay Life
18th February 2020
Prudential Insurance Company of America (PICA), a business unit of Prudential Financial, Inc., has announced the completion of two previously undisclosed longevity reinsurance transactions with Rothesay Life. The two bulk annuity transactions were completed in the second half of 2019 and amount to $6 billion in new longevity reinsurance business. “2019 was ... Read the full article
Legal & General closes £1.1bn pension de-risking deal with AIB Group
13th February 2020
Legal & General has announced the completion of a pension de-risking transaction with Allied Irish Banks plc, consisting of an £850 million buy-in and a £250 million Assured Payment Policy (APP). Covering 1,300 pension scheme members, the deal makes use of a new solution developed by Legal & General, which it ... Read the full article
PIC converts longevity swap into £1.6bn buy-in for MNOPF
10th February 2020
Pension Insurance Corporation plc (PIC) has completed the conversion of a longevity swap transaction into a £1.6 billion buy-in with the Merchant Navy Officers Pension Fund (MNOPF). The buy-in secures the pension of approximately 14,000 members and coverts a longevity hedge written in 2014 between MNOPF and Pacific Life Re. The 2014 ... Read the full article
Streamlined de-risking will be the norm for smaller pension schemes: LCP
5th February 2020
Pension, insurance and investment consultancy firm, Lane Clark & Peacock LLP (LCP) believes that increasingly, it will become standard for smaller pension schemes looking to de-risk to utilise a streamlined service. To date, LCP has completed 40 transactions worth more than £1 billion for smaller pension schemes using its streamlined buy-in ... Read the full article
Pacific Life Re in £10bn longevity swap with Lloyds Banking Group
29th January 2020
Pacific Life Re has announced the completion of a £10 billion longevity swap with Lloyds Banking Group, which it claims is the second largest transaction ever in the UK. The transaction, which covers the longevity risk of pensioner liabilities, is structured as an insurance policy with Scottish Widows Limited acting as ... Read the full article
The Co-operators in CA$660mn longevity insurance deal with CSS
28th January 2020
The third longevity insurance deal in Canada sees The Co-operators assume the longevity risk for CAD 660 million (approximately USD 500 million) of pension plan liabilities from the Co-operative Superannuation Society (CSS) Pension Plan. The longevity arrangement is designed to provide greater financial security to more than 6,300 members of the ... Read the full article
PIC announces £750m capital raise, posts record business for 2019
28th January 2020
Pension Insurance Corporation (PIC), the specialist insurer of defined benefit pension funds, has announced plans to issue up to £750 million of new equity to support growth off the back of detailing its performance in 2019. PIC has described the pension risk transfer market as “exceptionally buoyant” and says it exceeded ... Read the full article
Athene closes $6 billion in total pension risk transfer deals in 2019
6th January 2020
Athene Holding Ltd. has announced that it successfully closed approximately $6 billion in total pension risk transfer transactions for 2019, which includes the firm's inaugural transaction in the UK market. Approximately $800 million, or more than 13% of the total volume of pension risk transfer deals completed by Athene in 2019 ... Read the full article
L&G Retirement America hits $1bn premium market in 2019
11th December 2019
Legal & General Retirement America (LGRA), part of the US arm of the multinational financial services and insurance firm, has exceeded $1 billion in deals transacted in 2019. Since its formation in 2015, LGRA has written over $3.5 billion in total US volume, comprising $450 million in 2015, $448 million in ... Read the full article
UK pension risk transfer to accelerate as schemes mature, says Mercer
9th December 2019
Mercer, the global consulting subsidiary of broking and advisory giant Marsh & McLennan Companies, expects the UK bulk annuity market to exceed £40 billion by the end of 2019, and has projected accelerated growth in pension risk transfer over the next decade as schemes mature. Overall, Mercer expects the total UK ... Read the full article
Legal & General in £1.6bn pension buy-in with National Grid UK
26th November 2019
Legal & General Assurance Society Limited has entered into a £1.6 billion pension risk buy-in deal with the National Grid UK Pension Scheme (NGUKPS). The policy covers 6,000 pensioner members from Section B of the £20 billion defined benefit pension scheme, which is primarily for previous employees of the gas industry. This ... Read the full article
PIC completes £750mn pension buy-in with Scottish & Southern Energy
13th November 2019
Pension Insurance Corporation plc (PIC), the specialist insurer of defined benefit pension funds, has completed a third pension risk transfer transaction for a pension scheme sponsored by UK energy company Scottish & Southern Energy (SSE). The deal saw PIC convert a pensioner longevity swap held by the Scottish Hydro Electric Pension ... Read the full article
Aviva completes £1.7bn buy-in deal with staff pension scheme
24th October 2019
Aviva Life & Pensions UK has announced the completion of a £1.7 billion buy-in with the Aviva Staff Pension Scheme, securing the defined benefit pension liabilities of around 5,800 members. The deal, which affects 4,300 deferred and 1,500 current pension members, follows a £5 billion longevity swap in 2014 The swap passed ... Read the full article
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