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.
Rothesay Life in £520mn buy-in with Cadbury Mondelez Pension Fund
12th August 2019
Life insurer Rothesay Life has agreed a £520 million pensioner-only buy-in with the Cadbury Mondelēz Pension Fund, covering payments for c. 1,900 pensioner members. The bulk annuity transaction covers a representative subset of the liabilities for pensions already in payment, and will be held as an asset of the pension scheme. The ... Read the full article
L&G announces over £6.6bn of bulk annuity transactions in H1 2019
9th August 2019
Legal & General (L&G) successfully completed more than £6.6 billion of global bulk annuity transactions in the first-half of 2019, with UK pension risk transfer business accounting for £6.3 billion of this total. The £6.6 billion figure is out of a publicly announced total market transaction level of £14 billion, which ... 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
Retirement security bills may drive opportunities for life/annuity players: A.M. Best
24th July 2019
The SECURE Act, which is currently with the U.S. Senate after being passed in the U.S. House of Representatives, is expected to create additional market opportunities for the retirement and employee benefits segments of the U.S. life space, according to A.M. Best. The Setting Every Community Up for Retirement Enhancement Act ... Read the full article
UK pension buy-in and buy-outs on course to exceed £30bn in 2019: LCP
28th June 2019
The volume of pension buy-ins and buy-outs completed by UK pension plans is on course to exceed £30 billion during 2019, according to pension, investment and insurance consultancy Lane Clark & Peacock (LCP). The firm is predicting that volumes during the first half of the year will top £15 billion, doubling ... Read the full article
Athene helps take on $940mn of pension liabilities from Dana Incorporated
26th June 2019
Athene Holding Ltd., the Bermudian retirement services company owned by private equity firm Apollo Global Management, has taken on a portion of a $940 million block of pension liabilities from Dana Incorporated, a provider of power-conveyance and energy-management solutions for vehicles and machinery. Under the agreement, Dana will transfer all the ... 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
Athene adopts pension risk analytics platform from RiskFirst
13th June 2019
Athene Holding Ltd., one of Bermuda's leading retirement services companies, has become the first insurer to adopt PFaroe, the pension risk analytics and reporting platform from RiskFirst. Using PFaroe’s on-demand liability and transaction price monitoring services, Athene plans to help sponsors evaluate risk and purchase annuities at the optimal time. “We see ... Read the full article
L&G Re develops blockchain reinsurance platform for pension risk transfer
12th June 2019
Legal & General Reinsurance (L&G Re), the global reinsurance hub of the Legal & General Group, has announced the launch of estua-re, the first pension risk transfer (PRT) reinsurance platform to be powered by blockchain technology. The platform is reportedly capable of driving every stage of the PRT reinsurance value chain, ... Read the full article
Legal & General enters £4.6bn bulk annuity deal with Rolls Royce
6th June 2019
Legal and General Assurance Society Limited has entered into a partial buy-in to buyout bulk annuity transaction with the Rolls-Royce UK Pension Fund (RRPF) worth £4.6 billion. The deal, which Legal & General claims is the largest UK bulk annuity transaction to date, will secure the benefits of around 33,000 in-payment ... Read the full article
Legal & General completes £95m buy-in with 3i Group Pension Plan
26th April 2019
Legal & General has announced the completion of a £95 million buy-in with the Trustees of the 3i Group Pension Plan. 3i is an international investment manager focused on mid-market private equity and infrastructure. The buy-in covers roughly 20% of the plan’s liabilities for pensions already in payment. Along with with the buy-in ... Read the full article
Avery Dennison transfers $750mn in pension obligations to AIG
24th April 2019
American International Group, Inc. has announced that Avery Dennison Corporation has agreed to transfer $750 million of pension obligations to American General Life Insurance Company, part of AIG’s Life & Retirement business. The agreement covers approximately 8,500 retirees, beneficiaries, and deferred and active members. Avery Dennison is a global materials science company ... Read the full article
Legal & General enters $200mn pension risk transfer deal in Canada
24th April 2019
Legal & General Group plc has announced that it has agreed its first pension risk transfer (PRT) transaction in Canada for more than CAD $200 million (£114 million). The transaction is being written by Brookfield Annuity Company and Legal & General Reinsurance Company Limited, which will provide quota-share reinsurance for Canadian ... Read the full article
Aon advises Bank of America Merrill Lynch UK Pension Plan on £400mn buy-in
16th April 2019
Global insurance and reinsurance broker Aon has been named as the adviser for the Trustees of the Bank of America Merrill Lynch UK Pension Plan's recent £400 million (US$523mn) buy-in transaction with Scottish Widows. The buy-in covers all 915 pensioner members in the bank's largest pension scheme, and is the latest ... Read the full article
U.S single premium pension buy-out sales exceeded $10.4bn at Q4: LIMRA
3rd April 2019
U.S single premium pension buy-out product sales surpassed $10.4 billion in the fourth quarter of 2018, nearly equalling Q417, according to a quarterly survey by the LIMRA Secure Retirement Institute (LIMRA). This is only the third time Q4 sales have surpassed $10 billion, LIMRA says. “Sales tend to be larger in the ... Read the full article
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