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.
Buy-in and buy-out volumes hit £12bn in H1: Hymans Robertson
19th October 2022
Data from pensions and financial services consultancy Hymans Robertson shows that total pension scheme buy-in and buy-out volumes reached £12 billion in the first half of 2022. Analysts report that demand for transactions was steady at the start of the year and gathered pace from Q2 onwards. In total £12 billion of ... Read the full article
Inflation the leading catalyst for Pension Risk Transfer Activity: MetLife
14th October 2022
According to MetLife's 2022 Pension Risk Transfer Poll, 95% of defined benefit (DB) plan sponsors say that higher inflation is impacting their decision to move forward with a pension risk transfer (PRT), including 50% saying it’s very impactful. Elizabeth Walsh, head of Pension Solutions at MetLife, commented, “The economic landscape has ... Read the full article
LDI fallout may trigger the uptake of pension risk transfer, says Fitch
7th October 2022
Fitch Ratings has said that the need for pension funds to put up large amounts of extra collateral due to tumbling gilt prices will lead more UK defined-benefit pension funds to favour pension risk transfer deals with life insurers over liability-driven investment (LDI) arrangements with asset managers. In its report, Fitch ... Read the full article
Busy de-risking market to follow UK gilt volatility: Hymans Robertson
6th October 2022
Iain Pearce, Senior Risk Transfer Consultant at actuarial and advisory consultancy firm Hymans Robertson, has said that he expects to see a “very busy” de-risking market to continue despite recent volatility in the UK gilts market. UK financial market volatility continues despite Bank of England efforts to tactically buy up gilts ... Read the full article
DB pension trustees need to consider insurers’ ESG capabilities, says Hymans Robertson
30th September 2022
A new report from Hymans Robertson says that the ESG capabilities of insurers are an increasing priority for DB pension schemes trustees considering buy-ins and buy-outs. The firm said that trustees needs a ‘critical understanding’ of the role of ESG in order to gain the full benefit. The report, Spotlight: ... Read the full article
PIC completes £370m full-scheme buy-in with Yell
21st September 2022
The Pension Insurance Corporation (PIC) has concluded a full-scheme buy-in with the trustee of the Yell Pension Plan, covering £370m in remaining liabilities. This buy-in, the second between PIC and Yell, follows an initial buy-in in 2014 that insured 500 pensioners. This transaction takes total plan liabilities covered by PIC to ... Read the full article
IBM transfers portion of DB scheme to Prudential and MetLife
20th September 2022
Computer giant IBM has transferred a portion of its US-qualified defined benefit (DB) pension plan obligation to Prudential and MetLife. The firm said in an article on its website that the move was the ‘logical next step’ after several years looking to reduce the risk profile of its worldwide retirement-related plans ... Read the full article
L&G’s PRT Monitor indicates continued momentum in H1
25th August 2022
Legal & General Group’s Global Pension Risk Transfer (PRT) businesses have released the latest edition of the Global PRT Monitor, which analyses industry trends and market outlooks in the UK and US. According to the Monitor, both markets reported a strong start to 2022, with the first half of the year ... Read the full article
UK PRT market ‘strongest European growth opportunity’ for insurers: JP Morgan
11th August 2022
The UK’s pensions risk transfer (PRT) market is one of the strongest growth opportunities in European insurance, according to JP Morgan. A new report from the financial giant states that while there are high barriers for new entrants, there is at least a £600m growth opportunity over the next ten years. This, ... Read the full article
PIC signs £1.1bn insurance buy-in with EDS 1994 Pension Scheme
14th July 2022
Pension Insurance Corporation (PIC), a specialist insurer of defined benefit pension funds, has announced the completion of a pension insurance buy-in with the Trustee of the EDS 1994 Pension Scheme, which is the pension plan of DXC Technology. The agreement fully insures the Scheme’s pension liabilities; it covers 3,000 pensioners as ... Read the full article
2021 pension scheme buy-in and buy-out volumes topped £27.7bn
27th June 2022
Total pension scheme buy-in and buy-out volumes totalled £27.7bn in 2021, according to Hymans Robertson report. The Half Year Risk Transfer Report, showed that £20.9bn of pension scheme liabilities were covered by buy-ins and buy-outs across 97 transactions in the half-year to 31 December 2021. This showed to be the third-highest year ... Read the full article
Legal & General completes £21m pension buy-in with Barnett & Hall
23rd June 2022
Legal & General Assurance Society Limited has completed a £21 million full-scheme buy-in with Barnett & Hall Holdings Pension Scheme. The deal secures benefits for around 110 pension scheme members, of which 105 are non-pensioner members. BHH Limited is a subsidiary of W&R Barnett Limited, which is a fourth-generation family business established ... Read the full article
U.S. PRT market on course for “strongest half-year in 2022” – L&G
13th May 2022
The US pension risk transfer (PRT) market had its largest quarter in Q1 2022 with an estimated volume of $5.5bn, according to the latest Pension Risk Transfer Monitor from Legal & General. The insurer said that the first three months of 2020 and 2021 saw volumes of $4.5bn and $3.8bn. This, ... Read the full article
UK pension schemes increasing number of investments, says Aon
28th March 2022
Global re/insurance broker Aon has said that with 2022 promising to be another active year in the UK pension risk settlement market, an increasing number of schemes are focusing on their investment approach in the bid to be “settlement ready”. Aon’s recent Global Pension Risk Survey 2021/22 showed that more UK ... Read the full article
PIC enters £380m buy-in deal with AIR Canada
22nd March 2022
Pension Insurance Corporation plc (PIC), a specialist insurer of defined benefit pension funds, has signed a buy-in with the Trustee of the Air Canada (UK) Pension Trust Fund, covering £380 million of liabilities. The deal covers liabilities for about 1,400 members, 40% of which are deferred members who are yet to ... Read the full article
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