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.
UK life insurance market sees positive growth amid emerging risks: AM Best
18th June 2024
Credit rating agency AM Best maintains a stable outlook for the UK life insurance segment, highlighting strong growth in pension risk transfers and the positive impact of higher interest rates on investment yields. Pension-related products continue to drive substantial growth in the UK's life insurance segment. These products are projected to ... Read the full article
Raghu Ramachandran joins ARM as Director of Life & Annuity
29th May 2024
Actuarial Risk Management Ltd. (ARM) has appointed Raghu Ramachandran as the Director of its Life & Annuity insurance consulting division, effective immediately. As a seasoned investment expert, Ramachandran brings a distinguished career to ARM, spanning several notable positions. These include serving as the Head of Insurance Asset Channel at S&P Dow ... Read the full article
US PRT market sees largest opening quarter on record: Legal & General
24th May 2024
As per Legal & General's Pension Risk Transfer (PRT) Monitor, 2024 has started strong for the US PRT market, with Q1 closing at an estimated $15 billion, the largest opening quarter on record. According to the firm, Q1 2024 significantly outperformed the previous record of $6.3 billion, which was set in ... Read the full article
Rising death rates in England and Wales pose longevity risk for pension schemes
20th May 2024
In 2023, there was a notable increase in registered deaths in England and Wales, highlighting the emerging challenge of longevity volatility for pension schemes. Recent data from the Office for National Statistics (ONS) reveals that the number of registered deaths in England and Wales rose by 0.7% in 2023 compared to ... Read the full article
F&G Annuities & Life reaches $5bn in cumulative PRT transactions
10th May 2024
F&G Annuities & Life, Inc., the provider of insurance solutions serving retail annuity and life customers and institutional clients, has reached over $5 billion in cumulative sales of pension risk transfer (PRT) transactions, since the channel was launched in June 2021. Since its inception, the firm's PRT channel, one of F&G's ... Read the full article
Milliman reports increase in pension risk transfer costs in Feb
19th March 2024
Milliman, a global consulting and actuarial firm, has recently released the results of its Milliman Pension Buyout Index (MPBI), highlighting a slight increase in pension risk transfer costs at the end of February. As the pension risk transfer (PRT) market grows, it's crucial for plan sponsors considering shifting retiree pension obligations ... Read the full article
Debenhams Pension Scheme agrees on £600m bulk transfer to Clara-Pensions
15th March 2024
Pension scheme trustees for Debenhams have agreed to enter into a superfund deal with Clara-Pensions, a transaction that will see the transfer of £600 million of the former British retailer's pension assets to Clara. When Debenhams collapsed in 2019, over 10,000 members of its pension plan were transferred to the UK’s ... Read the full article
LGRA and RGA complete $700mn pension risk transfer with FirstEnergy
14th March 2024
Legal & General Retirement America (LGRA) and Reinsurance Group of America (RGA) have partnered to complete a $700 million pension risk transfer (PRT) transaction with US-based FirstEnergy. The transaction will secure the retirement benefits of approximately 2,000 retirees from the investor-owned electric utilities company. LGRA is lead administrator and will be fully ... Read the full article
Record-breaking year for Pension Risk Transfer market in 2023: Legal & General
19th February 2024
Legal & General's latest PRT Monitor has revealed a remarkable surge in global Pension Risk Transfer (PRT) market activity throughout 2023, with transactions totaling over £85 billion in the UK and US combined. This marks a record-breaking year for the UK market and the second-largest year on record for the US. In ... Read the full article
Immediate impact of PRA’s Funded Re consultation to be minimal: JP Morgan
15th February 2024
The UK Prudential Regulation Authority (PRA) is finalising its consultation on the use of funded reinsurance (Funded Re) in defined pension risk transfer (PRT) deals. The review began in November 2023 and will conclude on February 16, 2024. In a recent commentary from analysts at J.P. Morgan, they discuss what this ... Read the full article
Prudential closes “jumbo” pension risk transfer with Shell USA
9th February 2024
Prudential Financial, Inc., a global provider of financial services, closed a pension risk transfer transaction with Shell USA, Inc., assuming $4.9 billion in pension obligations for 21,500 of the company’s US retirees. As a result of this transaction, PFI, through its subsidiary The Prudential Insurance Company of America, will be responsible ... Read the full article
2024 a year of “unprecedented change” for risk transfer market: Hymans Robertson
1st February 2024
According to James Mullins, Partner and Head of Risk Transfer, Hymans Robertson, 2024 is already shaping up to be a year of "unprecedented change" for the risk transfer market, with a host of opportunities being presented for the "well-prepared" pension schemes. "For example, we expect to see two new entrants competing ... Read the full article
BoE to keep funded reinsurance under review
12th January 2024
In a letter to Chief Executive Officers (CEOs), the Bank of England (BoE) has said that it continues to "pay close attention to the role of funded reinsurance in the UK life market," amid continued growth in the country's life insurance sector and strong demand in the bulk purchase annuity ... Read the full article
London’s Pension Insurance Corp reportedly a target for large private equity firms
15th December 2023
The Financial Times has reported that Apollo, Carlyle, and KKR are all exploring bids for London-based Pension Insurance Corporation (PIC) ahead of the deadline, citing people familiar with the matter. Earlier this year, PIC announced a record £6.5 billion UK pension buy-in deal with the RSA UK Pension Trustees. It's ... Read the full article
Carlyle targets role in pension risk transfer market
5th December 2023
As per a new report from Bloomberg, Carlyle Group Inc. is investigating a potential role in the pension risk transfer market, with particular interest in the UK. Bloomberg noted that with workers living longer and markets in flux, employers worldwide are trying to get traditional pensions off their books, with many ... Read the full article
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