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.
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
Legal & General completes £2.4bn Nortel pension buyout
9th October 2018
Legal & General has completed a £2.4 billion buyout of the Nortel Networks UK Pension Plan, covering approximately 15,500 pensioner members and around 7,200 deferred members. Nortel went into administration in 2009 and the plan entered a Pension Protection Fund (PPF) assessment period, where it has remained whilst worldwide litigation and ... Read the full article
Prudential takes on $1.6bn in pension liabilities from International Paper
2nd October 2018
The Prudential Insurance Company, a subsidiary of Prudential Financial is to assume responsibility for paying pension benefits to ~23,000 of International Paper’s retirees, following an agreed transfer of $1.6 billion in pension liabilities. The agreement is the second pension risk transfer between the two companies in just over a year. Last ... Read the full article
Legal & General completes £4.4bn pension buy-in with British Airways
13th September 2018
Legal & General has completed a £4.4 billion buy-in for British Airways PLC’s pension scheme, Airways Pension Scheme (APS), in what it claims to be the largest ever bulk annuity policy arranged with a UK pension scheme. The transaction, which covers nearly 22,000 pensioners under British Airways’ APS scheme, also included ... Read the full article
One third of Defined Benefit schemes now targeting buyout: Willis Towers Watson
7th September 2018
One third (32%) of Defined Benefit (DB) pension scheme trustees are now targeting a buyout with an insurer, with a further 5% aiming to run the scheme off over time with a buyout-like level of funding, according to re/insurance broker Willis Towers Watson (WTW). It found that the remainder of DB ... Read the full article
U.S single premium pension buy-out sales exceed $8.2bn at Q2: LIMRA
3rd September 2018
U.S single premium pension buy-out product sales surpassed $8.2 billion in the second quarter of 2018, more than doubling sales totals for Q2 2017, according to a quarterly survey by the LIMRA Secure Retirement Institute (LIMRA SRI). LIMRA SRI also noted that Q2 2018 marked the 13th consecutive quarter of sales ... 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
PIC completes £800m buyout of BHS2 pension scheme
14th August 2018
Specialist insurer of defined benefit pension funds, Pension Insurance Corporation (PIC), has completed a full, £800 million buyout of the BHS2 pension scheme - set up in 2017 following the collapse of British Home Stores (BHS). BHS2 covers members of two predecessor BHS Pension Schemes, who chose to transfer to BHS2 ... Read the full article
2018 set to be record year for pension de-risking: Willis Towers Watson
14th August 2018
2018 is on course to be a record year for buy-in, buyout, and longevity swap transactions by defined benefit pension funds, with more than £10 billion of transactions having already been completed at the end of June, according to a report by re/insurance broker Willis Towers Watson (WTW). The total value ... Read the full article
PIC completes £75mn buy-out deal with Menzies Pension Fund
13th August 2018
Pension Insurance Corporation plc (PIC) has completed a £75 million buy-out deal with section B of the Menzies Pension Fund (the Scheme), sponsored by Menzies Distribution Limited. The buy-out comes as Trustees look to lock down the risk associated with the scheme after it was sectionalised in May last year to ... 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
CNO secures reinsurance from Wilton Re on long-term care policies block
2nd August 2018
Bankers Life and Casualty Company, a subsidiary of CNO Financial Group, has secured reinsurance on its long-term care policies written prior to 2003, with reserves of approximately $2.7 billion, through 100% indemnity coinsurance. Wilton Re, a U.S life re/insurer that specialises in the acquisition of in-force portfolios, has agreed to take ... Read the full article
Prudential enters into $923mn pension risk transfer deal with Raytheon
30th July 2018
Prudential Insurance Company of America, a subsidiary of Prudential Financial, has entered into a group annuity contract with Raytheon, a major U.S. defence contractor and industrial corporation, that will see it take over $923 million in pension obligations. The contract covers approximately 13,000 U.S retirees, as well as their beneficiaries, from Raytheon’s ... Read the full article
PIC completes £60 million pension buy-in with the CAA
25th July 2018
Specialist insurer Pension Insurance Corporation (PIC) has announced the completion of its second buy-in with the Civil Aviation Authority's (CAA) defined benefit scheme, covering £60 million of liabilities. “This transaction takes us a step closer to achieving our long-term aim of de-risking the scheme,” said Joanna Matthews, Chair of the Trustees. “It is ... Read the full article
Trustees wary of defined benefit pension consolidation: Willis Towers Watson
24th July 2018
Over a third of pension scheme trustees believe consolidating defined benefit (DB) pensions into a pension ‘super fund’ would appeal to corporate sponsors, but only a quarter would feel comfortable judging whether such a move would make sense, according to Willis Towers Watson. This kind of DB consolidation would allow employers ... Read the full article
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