Metlife & Zurich help UK pension to $3.5bn longevity swap & reinsurance

Metlife & Zurich help UK pension to $3.5bn longevity swap & reinsurance

Tom Scott, Associate Partner in Aons Risk Settlement Group, specified, “MetLifes entry into the reinsurance market supporting U.K. longevity swaps is fantastic news for pension plans. MetLife adds significant capability and appetite to a currently extremely busy sector. With continued high need from pension schemes for durability de-risking services, this is extremely welcome and we look forward to another hectic year in 2022.”

Metlife and Zurich have actually collaborated with Aons Risk Settlement Group to finish a United States $3.5 billion transfer of longevity danger for a UK pension plan, through an intermediated durability swap and reinsurance arrangement.Metlife has actually reinsured the durability threat, while Zurich stood in the middle of the deal and entered into the longevity swap arrangement with the unnamed UK pension.
Metlife stated that its Metropolitan Tower Life Insurance Company subsidiary entered into what is its first UK pension focused durability reinsurance transaction for this deal.
Zurich Assurance Ltd., a UK based Zurich subsidiary, acted as intermediary, to interface with the pension and help with the swap and transfer of risk through reinsurance to Metlife.
This deal was finished in the fourth-quarter of 2021, so contributes to the overall longevity swap activity in the UK for the in 2015.
We had reported on and taped ₤ 12.7 billion of UK focused pension plan durability swap arrangements in 2021, all of which are listed in our longevity swaps and run the risk of transfer Deal Directory.
This deal adds around another UK ₤ 2.6 billion to that total, taking 2021 durability swap volumes to around ₤ 15.3 billion so far.
Under the terms of this transaction, Metropolitan Tower Life Insurance Company has actually offered reinsurance for the durability risk related to the roughly $3.5 billion of pension liabilities.
Its the very first time Metlife has participated in a UK pension durability swap transaction.
” We are happy MetLife has been picked to reinsure these commitments. As MetLifes very first pension plan longevity swap deal, this marks a crucial milestone in the evolution of our U.K. longevity reinsurance service and highlights MetLifes focus on development to meet the consumers needs,” explained Jay Wang, senior vice president and head of Risk Solutions with MetLifes Retirement & & Income Solutions organization.
” We are likewise happy to have had the ability to develop our relationships with Aon and Zurich in this market and aspire to continue the collaboration to support pension plan de-risking in a time of increased uncertainty,” Wang included.
Tom Scott, Associate Partner in Aons Risk Settlement Group, mentioned, “MetLifes entry into the reinsurance market supporting U.K. durability swaps is fantastic news for pension plans. MetLife adds considerable capacity and hunger to an already very hectic sector. With continued high demand from pension schemes for durability de-risking solutions, this is very welcome and we anticipate another hectic year in 2022.”
Greg Wenzerul, Head of Longevity Risk Transfer at Zurich likewise stated, “We are delighted to have actually dealt with MetLife on this most current offer. MetLifes entry to this market, and the specific functions of this transaction, are favorable for this market as a whole.”
As we explained the other day, forecasts for longevity swap activity in the UK for 2022 suggest an even busier market over the coming months. WTW has forecast ₤ 25 billion of pension related durability swaps for 2022.
Read about numerous historical durability swap and reinsurance deals in our Longevity Risk Transfer Deal Directory.

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