Browsing: Longevity and Mortality Risk Transfer

Data – either a lack of it, too much of it or even the wrong kind – is proving a challenge to the UK’s pension risk transfer market.

The different risk exposures and risk appetites of insurance companies mean that reinsurance is used in a number of ways as there is not a ‘one size fits all’ offering.

Pension consulting firm K3 Advisory has led the completion of a £2m full scheme buy-in transaction with an unnamed sponsor in the mechanical and electrical industry with Legal & General.

The Atradius UK Pension Scheme has concluded a £190m bulk purchase annuity buy-in transaction with PIC that secures the pensions of 361 current pensioners and dependents, 344 deferred members and 66 active members.

£70m buy-in transaction will secure the benefits of all uninsured scheme members, covering approximately 490 deferred members and 400 pensioner members.

£7m deal was completed in March and insures the benefits of 24 pensioners and 15 deferred members.

The deal, which included a novation of the scheme’s existing longevity swap and the transfer of illiquid assets, was completed in August this year.

Farooqui spent time previously at Aon and Mercer.

During September, the estimated cost to transfer retiree pension risk to an insurer in a competitive bidding process rose from 100.8% of a plan’s accounting liabilities to 101.7%.

Download Life Risk News Volume 3, Issue 10, October 2024 The US Federal Reserve cut the country’s interest rate by…