Browsing: Longevity and Mortality Risk Transfer

Lack of blockbuster deals but market remains busy as more schemes seek to de-risk.

The temptation for schemes to reach blindly for the ‘quick and easy’ option is high, particularly for smaller schemes. This could result in requests for contributions from sponsors that are not strictly required, and lower returning investment strategies being implemented.

The deal, worth $800m, secures the retirement benefits of over 1,700 retirees and over 3,000 deferred members.

In total, the transactions insure the benefits of 1,127 pensioners and dependants as well as 1,365 deferred members,

The deal secures the pensions of around 500 plan members.

The total value of all three deals is £900m.

The estimated retiree pension risk transfer cost is now 101.1% of a plan’s accumulated benefit obligation.

Transaction covers two schemes worth £63m and £4m.

The agreement, Clara’s fourth, marks another milestone for UK superfunds, as both the first transaction to make use of a ‘connected covenant’ structure and the first involving a not-for-profit employer.

Transaction covers the benefits of approximately 1,300 in-payment members.