PIC reinsures £760m longevity risk in Aon plan
Prudential Insurance Company of America (PICA) has completed its third longevity reinsurance deal with the Pension Insurance Corporation (PIC) for the Aon Retirement Plan.
The deal which is PIC's first sizeable transaction under the new Solvency II regime reinsures longevity risk associated with the £3bn-£4bn scheme.
It covers $1.1bn (£760m) liabilities for around 2,900 pensioners across two sections of the Aon Retirement Plan.
This includes the third of the Aon Retirement Plan for which PIC concluded a £900m buy-in in May.
PICA's longevity reinsurance vice president Bill McCloskey said: "This reinsurance transaction highlights the growing demand for strategies to manage longevity risk along with the need to create reinsurance solutions in support of continued growth of the market. It demonstrates that large buy-ins priced under Solvency II is still an attractive option for trustees."
PIC head of longevity risk Khurram Khan added: "We are pleased to have placed the longevity cover within a short period and strengthened our partnership with PICA."
The Aon transaction is the third PICA has engaged in with PIC. The previous two deals were carried out in 2015, totalling £1.6bn in value.
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