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, mentioned, “MetLifes entry into the reinsurance market supporting U.K. longevity swaps is fantastic news for pension plans. MetLife adds considerable capacity and hunger to a currently extremely busy sector. With continued high need from pension schemes for durability de-risking solutions, this is extremely welcome and we look forward to another hectic year in 2022.”

Metlife and Zurich have actually teamed up with Aons Risk Settlement Group to complete a United States $3.5 billion transfer of durability risk for a UK pension scheme, through an intermediated durability swap and reinsurance arrangement.Metlife has actually reinsured the longevity risk, while Zurich stood in the middle of the deal and got in into the durability swap plan 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 offer.
Zurich Assurance Ltd., a UK based Zurich subsidiary, acted as intermediary, to user interface with the pension and facilitate the swap and transfer of danger through reinsurance to Metlife.
This deal was completed in the fourth-quarter of 2021, so includes to the total durability swap activity in the UK for the last year.
We had actually reported on and tape-recorded ₤ 12.7 billion of UK focused pension scheme longevity swap arrangements in 2021, all of which are noted in our durability swaps and run the risk of transfer Deal Directory.
This deal adds around another UK ₤ 2.6 billion to that overall, taking 2021 durability swap volumes to around ₤ 15.3 billion up until now.
Under the terms of this deal, Metropolitan Tower Life Insurance Company has actually supplied reinsurance for the durability risk related to the roughly $3.5 billion of pension liabilities.
Its the first time Metlife has taken part in a UK pension durability swap transaction.
” We are delighted MetLife has actually been chosen to reinsure these responsibilities. As MetLifes first pension plan longevity swap transaction, this marks an important turning point in the development of our U.K. durability reinsurance company and highlights MetLifes concentrate on development to satisfy the customers needs,” explained Jay Wang, senior vice president and head of Risk Solutions with MetLifes Retirement & & Income Solutions business.
” We are likewise pleased to have been able to construct our relationships with Aon and Zurich in this market and are excited to continue the collaboration to support pension scheme de-risking in a time of increased unpredictability,” Wang added.
Tom Scott, Associate Partner in Aons Risk Settlement Group, specified, “MetLifes entry into the reinsurance market supporting U.K. longevity swaps is wonderful news for pension schemes. MetLife adds considerable capacity and hunger to a currently extremely busy sector. With continued high need from pension schemes for durability de-risking solutions, this is really welcome and we anticipate another busy year in 2022.”
Greg Wenzerul, Head of Longevity Risk Transfer at Zurich likewise stated, “We are pleased to have dealt with MetLife on this most current offer. MetLifes entry to this market, and the specific functions of this transaction, are positive for this market as a whole.”
As we explained the other day, projections for durability swap activity in the UK for 2022 recommend an even busier market over the coming months. WTW has anticipated ₤ 25 billion of pension related durability swaps for 2022.
Check out about lots of historical longevity swap and reinsurance transactions in our Longevity Risk Transfer Deal Directory.

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