Author: Greg Winterton

Ginnie Mae has announced a term sheet for its proposed Home Equity Conversion Mortgage (HECM) Mortgage-Backed Securities (HMBS) 2.0 program, initiating a comment period ending July 31st. The proposed program aims to enhance liquidity access for HMBS Issuers by allowing the re-pooling of active and non-active buyouts into new custom, single-Issuer pools.  “The team at Ginnie Mae works hard to promote st​ability and growth for our markets, communities, and families alike.” said HUD Acting Secretary Adrianne Todman.   “It is critical that we enhance our existing tools so we can better support seniors and the reverse mortgage industry. We look forward…

The Rolls-Royce & Bentley Pension Fund, which is sponsored by Bentley Motors Limited, as concluded an £880m Bulk Purchase Annuity transaction with Standard Life. This is a full scheme buy-in transaction covering c. 6,000 members of the scheme. The buy-in included novation of the scheme’s existing longevity swap with Standard Life, originally executed in 2013 with Abbey Life (now part of Standard Life). The deal completed in June 2024. “We are delighted to have collaborated with the Trustees, Bentley Motors Limited and their respective advisers to develop and deliver a solution that meets the specific needs and objectives of the…

Hudson Structured Capital Management has appointed Katherine Park as Head of Capital Formation and Investor Relations.  Park has more than 20 years of debt and equity advisory experience, working with alternative investment managers and public and private companies ranging from early-stage to complex global institutions.  Prior to joining HSCM, Park served as the Head of Business Development at several early-stage investment firms, and previously, at Goldman Sachs, she launched and led the US fund and private capital raising businesses for the firm’s investment banking and securities divisions.  “We are thrilled to welcome Kathy to the HSCM family,” said Michael Millette,…

Harte Hanks, Inc., has divested and terminated its obligations related to Qualified Pension Plan I, effective as of August 2024, via a bulk purchase annuity contract with Nationwide.  “We pride ourselves on offering a seamless transition experience for plan participants, helping them feel confident that their pension benefit will continue under our management,” said Paula Cole, vice president of Nationwide’s Pension Risk Transfer business. “We’re excited to welcome these new plan members to Nationwide and look forward to providing extraordinary care to them beyond just this transition.”  In accordance with the commitment letters with Nationwide, Harte Hanks made a one-time…

British luxury interior design and furnishings company Sanderson Design Group has finalised an agreement with the trustees of the Abaris Holdings Limited Pension Scheme in which it has paid £2.3m in cash to enable the transfer of the scheme’s risks to an insurer under a buy-in insurance policy investment.  In addition to the agreed cash amount, which was funded from the group’s existing resources, the insurer has also received the Abaris Scheme’s existing investments as part of the buy-in investment.  Scheme administration and advisory costs, estimated to be approximately £700,000 in total, will continue to be paid by the group…

Aviva has announced a £165m bulk purchase annuity full scheme buy-in with the Sibelco UK Occupational Pension Scheme. The deal, completed in April 2024, secures the benefits of all of the around 1,200 members of the scheme in full.  “In today’s climate it’s more important than ever for schemes to be well-prepared when approaching the market,” said Toby Holmes, Senior Deal Manager at Aviva.  “This process has highlighted just how quickly and smoothly a transaction can run when it follows a well thought-out and crisply executed transaction process.  The trustees had a clear strategy to secure member benefits, and their…

The UK pension scheme risk settlement market is likely to be boosted in the second half of 2024, following publication of insurers’ latest annual returns that confirm solvency levels remain strong and with ample headroom to support significant new business volumes, according to professional services firm Aon.  Publication of insurers’ latest annual returns demonstrates that most insurers are reporting slightly lower solvency coverage at year-end 2023 compared to the previous year.   This largely reflects some return to normality following unusually high positions, in particular driven by favourable market conditions towards the end of 2022. While 2023 saw some capital strain…

Actuarial and consulting firm Milliman’s latest Milliman Pension Buyout Index (MPBI) shows the estimated cost to transfer retiree pension risk to an insurer in a competitive bidding process decreased slightly, from 100.9% of a plan’s accounting liabilities (accumulated benefit obligation, or ABO) to 100.7% of those liabilities. That means the estimated retiree PRT cost is now 100.7% of a plan’s ABO. During the same time period, the average annuity purchase cost across all insurers in our index also decreased, from 103.3% to 103.2%. The competitive bidding process is estimated to save plan sponsors about 2.5% of PRT costs as of…

The life settlement industry’s secondary market has grown for the third consecutive year, according to The Deal’s life settlements league tables, published in early June.  The Deal collects transaction data by licensed life settlement providers via public records requests to state insurance departments. Providers are a mandatory participant in the life settlement market, so the data has become something of an annual bellwether for the health of the market overall.  This year, the two main points are that the number of transactions completed in the secondary market is up for the third consecutive year, and the aggregate face value of…

In mid-May, Connecticut Insurance Commissioner Andrew N. Mais filed a ‘Petition for Rehabilitation and Appointment of the Commissioner as Rehabilitator of PHL Variable Insurance Company (PHL)’ and its subsidiaries, Concord Re, Inc. and Palisado Re, Inc., in the Connecticut Superior Court.  “Today’s filing underscores the Department’s commitment to protecting consumers and ensuring the availability of a financially sound insurance industry in Connecticut,” said Commissioner Mais in a press release.   “This action is a critical first step for the Department to begin developing and implementing a plan of rehabilitation that both maximizes the value of the Companies’ assets and equitably administers…