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.
L&G inks £130mn pension buy-in with QinetiQ scheme
17th June 2021
Legal & General has completed a £130m buy-in transaction with the QinetiQ pension scheme, covering the benefits for over 390 new retirees since a previous buy-in in April 2019. The deal marks the scheme’s first buy-in transaction with L&G and, as part of the agreement, an umbrella contract was established which ... Read the full article
L&G inks two PRT deals with TUI pension trust
2nd June 2021
Legal & General has agreed two pension risk transfer (PRT) transactions with the TUI GROUP UK Pension Trust, including a £610 million partial buy-in for the BAL section and a £184 million full buy-in for the TAPS section. This deal marks the first PRT transaction between the two parties, with L&G ... Read the full article
Swiss Re helps complete £3.7bn longevity swap deal for Fujitsu
13th May 2021
Global reinsurer Swiss Re has helped transfer risks associated with 9,000 members of Fujitsu's ICL Group Pension Plan, after backing a new £3.7 billion longevity swap deal. By leveraging a Guernsey captive insurance cell, not only was the risk transfer’s pricing optimised, its access to reinsurance capital became more efficient. After the ... Read the full article
PFI & Zurich close £6bn longevity reinsurance swap
28th April 2021
Prudential Financial subsidiary, The Prudential Insurance Company of America (PICA), and Zurich Assurance Ltd. have closed a £6 billion longevity swap with an unnamed UK pension scheme. The longevity risk was reinsured to the International Reinsurance business of PICA, with Zurich acting as intermediary on a ‘pass-through’ basis. The transaction, which closed ... Read the full article
Athene completes PRT transaction with JCPenney
8th April 2021
Athene Holdings (Athene) has closed a significant pension risk transfer transaction in connection with department store JCPenney's pension plan termination. Under the terms of the transaction JCPenney transferred $2.8 billion in pension obligations to Athene. Athene's wholly-owned subsidiaries, Athene Annuity and Life Company, and Athene Annuity & Life Assurance Company of New ... Read the full article
Canada Life Reinsurance strikes €4.7bn longevity deal with Athora Netherlands
18th March 2021
Canada Life Reinsurance, a provider of reinsurance solutions for life and health, annuity, and property & casualty business, has entered into a long-term longevity reinsurance transaction with Athora Netherlands, part of Amstelveen, Netherlands headquartered Athora Holding Ltd. The agreement, which highlights Canada Life Reinsurance's strength as a partner for longevity reinsurance ... Read the full article
Aon predicts record year for UK risk settlement
4th March 2021
Re/insurance broker Aon believes that 2021 could potentially be another record year for the UK risk settlement industry. According to Aon’s data, the UK pension scheme risk settlement market exceeded £54 billion last year, breaking all previous records. But analysts see no sign of momentum slowing, meaning 2021 could reach eclipse even ... Read the full article
MetLife expands in UK longevity market with $5bn Rothesay transactions
26th February 2021
Metropolitan Tower Life Insurance Company, a subsidiary of financial services company MetLife, Inc., has announced the completion of two longevity reinsurance transactions with Rothesay Life Plc. After entering the UK longevity reinsurance market in June of last year via an arrangement with Pension Insurance Corporation (PIC), MetLife subsequently completed ... Read the full article
L&G agrees £570m buy-in transaction with Deutsche Bank pension scheme
16th February 2021
Life insurer Legal & General (L&G) has agreed a £570 million pensioner buy-in transaction with the DB (UK) Pension Scheme, which is sponsored by a subsidiary of Deutsche Bank AG. The buy-in represents the first step on the Scheme’s ... Read the full article
UK risk settlement market to continue thriving in 2021: Aon
6th January 2021
Analysts at Aon believe the UK risk settlement market will continue to thrive in 2021, with growth dependent on the number of larger transactions and on the speed at which the market for commercial consolidation develops. The broker noted that activity in the settlement market during 2020 was defined by the ... Read the full article
L&G agrees £1.1bn bulk annuity deal with Maersk
17th December 2020
Legal & General has agreed a £1.1 billion bulk annuity transaction with the Trustee of the Maersk Retirement Benefit Scheme. This deal secures the benefits of around 1,900 deferred members and 3,000 retirees. In recent years the Trustee has taken a number of steps to de-risk the Scheme including fully hedging its ... Read the full article
Reckitt Benckiser completes £415m buy-in with Scottish Widows
11th November 2020
The Reckitt Benckiser Pension Fund has secured a £415m buy-in with Scottish Widows, insuring the benefits of around half of the fund's pensioner liabilities. The £415m transaction is set to remove the interest rate, inflation and longevity risk relating to these liabilities. The transaction has only just been announced, although it ... Read the full article
Pension Risk Transfer an area of growth for re/insurers: AM Best
22nd October 2020
Credit rating agency, AM Best has released a report explaining its views on how Pension Risk Transfer is an area in which reinsurers could grow. It explained that reinsurers have the knowledge and underwriting resources to assume mortality risk, therefore it would be only natural to apply this knowledge to underwrite ... Read the full article
New York Times Company in $235mn pension transfer deal with MassMutual
16th October 2020
The New York Times Company has announced that it has entered into a pension risk transfer agreement with Massachusetts Mutual Life Insurance Company (MassMutual). Approximately $235 million will be transferred to MassMutual in pension obligations under The New York Times Companies Pension Plan. This arrangement is part of the company’s continued effort ... Read the full article
L&G Retirement America records $628mn of Q3 premium
16th October 2020
Legal & General Retirement America (LGRA), part of the US arm of the multinational financial services and insurance firm, has recorded more than $628 million in premiums for the third quarter of 2020. The figure brings LGRA’s total amount of premiums written this year to nearly $1 billion. From July to September, ... Read the full article
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