Browsing: Longevity and Mortality Risk Transfer

Mark Sharkey, BPA Origination Lead, Royal London shares his views on the state of the market and its outlook for 2025.

The £120m agreement insures Lufthansa Group’s three UK defined benefit pension schemes in one integrated transaction.

The transaction secures the benefits of all 154 members, comprising 37 pensioners and 117 deferred members.

Taking place on Tuesday, 20th May, 2025 in London’s Canary Wharf district, the Life ILS Conference 2025 will be the event’s sixth edition.

The insurance market has responded to meet the growing demand for de-risking solutions for defined benefit pension funds with both innovation and new participants – and further developments are anticipated.

The UK defined benefit pensions de-risking market is likely to see £50bn in bulk annuity transactions and £20bn in longevity swaps in 2025, according to WTW’s annual De-risking Report.

£53m deal is Royal London’s latest since entering BPA market last year.

The estimated retiree pension risk transfer cost is now 101.4% of a plan’s accumulated benefit obligation.

Prismic will reinsure approximately $7 billion of reserves backing USD-denominated Japanese whole life insurance policies which were recently originated by Prudential’s Japanese affiliates.

The buy-in covers the pension benefits of 95 pensioners and dependents, and 74 deferred scheme members and is worth £24m.