Browsing: Longevity Risk

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.

New report highlights recent activity and outlines challenges and opportunities in the space.

The average multiple delivered to American Seniors who sold their policy in the secondary market last year was more than six and a half times the cash surrender value.

The aggregate funding position of UK defined benefit pension funds potentially eligible for entry to the country’s Pension Protection Fund fell £13bn last month to £202.5bn, a funding ratio of 122.8%.