Prudential Insurance Company of America has agreed to reinsure around $1.2bn (£920m) of Pension Insurance Corporation's (PIC) longevity risk.
The deal covers around 4,000 pensioners across four defined benefit (DB) schemes, and is the two companies' fifth transaction together since their partnership began in 2015. It reinsures the longevity...
Longevity swap transactions will hit a record-breaking level of £25bn this year, Willis Towers Watson has predicted.
Schemes are increasingly looking at longevity hedging as part of their de-risking process, according to a survey by Insight Investment.
Insurers are now able to accommodate up to £30bn of bulk annuity transactions every year with no impact on pricing, according to Lane Clark & Peacock (LCP).
Increasing demand for global longevity reinsurance could lead to higher bulk annuity prices but less exact matching for longevity hedging, says Mercer.
The Electricity North West Group of the Electricity Supply Pension Scheme (ESPS) has invested in an £805m pensioner buy-in with Scottish Widows.