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.
LGRA reveals anticipated $10bn volume in Q3 for US Pension Risk Transfer market
17th November 2023
Legal & General Retirement America (LGRA) has unveiled insights into the US Pension Risk Transfer (PRT) market for the third quarter of 2023. Following a record-breaking first half with a deal volume of $22.5 billion, the Q3 edition of the US Pension Risk Transfer Monitor indicates an anticipated market volume of ... Read the full article
Resolution Re enters first UK PRT reinsurance transaction
30th October 2023
Long-term legacy life insurance solutions provider Resolution Life has announced that its Bermudian reinsurance platform, Resolution Re, has entered into the UK Pension Risk Transfer (PRT) market with its first reinsurance agreement. The transaction reinsures longevity and asset risks associated with UK pension liabilities of a leading UK-regulated insurer. Under the terms ... Read the full article
Going exclusive a “powerful move” for pension schemes when approaching buy-in/buy-out: Report
6th October 2023
Running an exclusive process when approaching the insurance market for a buy-in or buy-out could lead to a better outcome for pension schemes than a traditional auction process, according to Hymans Robertson’s Ian Church. The Head of Core Transactions and Risk Transfer Specialist said: “Pension schemes traditionally focus on running an ... Read the full article
Record 89% of U.S. companies eye full divestment of pension liabilities: MetLife’s 2023 Poll
5th October 2023
The U.S. pension risk transfer market is on a record-breaking trajectory, with an overwhelming 89% of companies planning to divest all their defined benefit (DB) pension plan liabilities, according to MetLife's 2023 Pension Risk Transfer Poll. This indicates that the momentum witnessed in recent years is set to continue, with an ... Read the full article
Record UK and US PRT transaction volumes in H1: L&G
24th August 2023
Rising pension funding ratios drive unprecedented demand in the Pension Risk Transfer (PRT) market, with record transactions in the first half of 2023 in the US and UK, according to a recent report by Legal & General. The latest edition of the Global PRT Monitor revealed that the UK has experienced ... Read the full article
Record £25bn of bulk annuity transactions anticipated in H1 2023: Hymans Robertson
20th July 2023
“Busyness in the Risk Transfer market is at an all-time high, with around £25bn of bulk annuity transactions expected to be secured in the first half of 2023. To deal with this level of activity and to enable them to secure a successful transaction, the way in which pension schemes ... Read the full article
Fidelity Investments forms retail annuities and pension risk transfer focused reinsurer
17th July 2023
US investment giant Fidelity Investments has formed Soteria Reinsurance Ltd., a newly incorporated Class C insurer registered in Bermuda that will focus on the US retail fixed annuities and pension risk transfer space. On June 20th, 2023, Soteria Re, which is owned directly by Soteria Reinsurance Holdings, LLC, a wholly owned ... Read the full article
Legal & General Retirement reports £6.8bn of PRT year-to-date
6th July 2023
Legal & General Retirement Institutional (LGRI), the UK bulk annuity division of Legal & General, has made strong progress in multiple sectors, including Pension Risk Transfer (PRT), individual annuities, and US protection, transacting £6.8 billion of PRT year-to-date and experiencing a notable rise in pension schemes approaching the insurance market. Alongside ... Read the full article
Competitive PRT costs increase from 98.3% to 100.5% in May: Milliman
23rd June 2023
During May, the estimated cost to transfer retiree pension risk to an insurer in a competitive bidding process increased from 98.3% of a plans accounting liabilities (ABO) to 100.5%, according to premier and global consulting firm, Milliman. This means the estimated retiree PRT cost is now 100.5% of a plans' ABO. However, ... Read the full article
BoE’s PRA warns UK life insurers of key risks in FundedRe arrangements
16th June 2023
UK regulator the Prudential Regulation Authority (PRA), part of the Bank of England, wrote to life insurers to highlight the key risks about the use of funded reinsurance (FundedRe). FundedRe involves transferring the significant risks of both asset/investment and longevity to a reinsurer, effectively transferring all the substantial risks associated with ... Read the full article
LGRA & RGA enter into $309m PRT transaction with PPG
31st May 2023
Legal & General Retirement America (LGRA) & Reinsurance Group of America (RGA) have entered into a $309 million pension risk transfer (PRT) transaction with PPG. PPG is a Pittsburgh-based Fortune 500 global leader in manufacturing paints, coatings and specialty materials. The lift-out covers over 4,000 retirees and beneficiaries with benefits under a ... Read the full article
US PRT market expected to close largest Q1 on record with $6bn: LGRA
17th May 2023
According to Legal & General Retirement America (LGRA), the first quarter of 2023 is expected to “finish strong” with around $6 billion in total market volume for the US pension risk transfer (PRT) market, which will also surpass last year’s record of $5.3 billion. In their Q1 2023 PRT Monitor, LGRA ... Read the full article
Pacific Life Re & Zurich enter £1.6bn longevity hedge with YCB
2nd May 2023
The Yorkshire and Clydesdale Bank (YCB) Pension Scheme has announced a longevity swap transaction with Pacific Life Re International and Zurich Assurance to manage longevity risk in relation to £1.6 billion of pensioner liabilities. The arrangement will provide long term protection to the scheme against costs resulting from pensioners or their ... Read the full article
Rothesay completes £160m full scheme buy-in for Repsol Sinopec
2nd May 2023
UK specialist pensions insurer Rothesay has completed a £160 million full scheme buy-in with Repsol Sinopec, an oil and gas exploration and production company operating in the North Sea. The transaction secures the benefits for all members of the company’s scheme, which includes defined benefit liabilities for 141 pensioners and dependants ... Read the full article
UK L&H insurers to benefit from “booming” bulk annuity market in 2023: Moody’s
29th March 2023
Analysts at Moody's have suggested that the UK's Life & Health insurers will continue to benefit from sustained bulk purchase annuities (BPA) growth at still attractive margins in 2023 and beyond. According to the analysts, BPA transfers have strengthened insurers' earnings in the past, and are set to help offset lower ... Read the full article
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