Browsing: Longevity Risk

£270m deal is the third buy-in that Aviva has transacted with schemes sponsored by WM Morrison Supermarkets Limited.

BMO Insurance will issue annuities covering the responsibility for pension benefits of approximately 860 pensioners and beneficiaries.

£63m deal covers the pensions of all 570 members.

The Life Insurance Settlement Association ‘s latest Market Member Survey shows licensed life settlement providers delivered a six-times multiple over the cash surrender value to those who sold their policy last year.

There has been significant activity in bulk purchase annuity buy-ins in the UK in recent years, which at some point will need to move to buy-out so that the original scheme can wind-down.

The portfolio servicing component can have a significant impact on returns.

The bulk annuity market has high barriers to entry. Firms require significant long-term capital and specialist expertise, including asset sourcing, actuarial modelling and risk management, and regulatory approval is not straightforward.

For investors, the fundamental value proposition of lifespan-based financial products is simple: they have near-zero correlation to traditional market indices and the often-chaotic impulses of global markets.

Gareth Truran of the Bank of England’s Prudential Regulation Authority offers a regulator’s view of the UK bulk purchase annuity market.

Shelly Beard, Managing Director at WTW, offers her views on the state of play in the UK pension risk transfer market as we approach the halfway point of 2025.