US/UK - Prudential Retirement has completed its first longevity reinsurance transaction with UK-based Rothesay Life.
Under the terms of the transaction, Prudential Retirement will provide reinsurance of longevity risk to Goldman Sachs subsidiary Rothesay Life, initially covering pension account values of £100m ($160m). Prudential Retirement is a business unit of Prudential Financial, known as Pramerica in the UK.
"We are proud to complete our first transaction with Rothesay Life, a market leader in the United Kingdom," said Phil Waldeck, senior vice president and head of Prudential's Pension & Structured Solutions business.
"Prudential's financial strength, balance sheet capacity and the experience of our Pension Risk Transfer team uniquely positions us to help companies manage longevity risk and help secure pensions."
"Plan sponsors face significant uncertainty and exposure to pension risk," said Amy Kessler, senior vice president and head of Prudential's longevity reinsurance effort. "Prudential's role as a reinsurer of longevity risk helps increase the security of the promise pension plans offer to participants around the world.
"Providing longevity reinsurance for insurers in the United Kingdom is one more example of how we're helping to create retirement security through innovative solutions and strong partnerships. This transaction is another step in further developing our pension risk transfer business."
Rothesay Life chief executive officer Addy Loudiadis added: "Rothesay Life is delighted to have partnered with Prudential to complete its first UK longevity reinsurance transaction and believes that this success marks the beginning of an important long-term relationship in the pension insurance sector."
The deal comes a week after Prudential Retirement completed the first buy-in seen in the US. (Global Pensions: 26 May 2011).
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