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. durability swaps is fantastic news for pension schemes. MetLife adds considerable capacity and cravings to a currently very busy sector. With continued high demand from pension plans for durability de-risking services, this is extremely welcome and we look forward to another busy year in 2022.”

Metlife and Zurich have teamed up with Aons Risk Settlement Group to finish an US $3.5 billion transfer of durability threat 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 offer and participated in the longevity swap arrangement with the unnamed UK pension.
Metlife stated that its Metropolitan Tower Life Insurance Company subsidiary participated in what is its very first UK pension focused longevity reinsurance deal for this deal.
Zurich Assurance Ltd., a UK based Zurich subsidiary, served as intermediary, to interface with the pension and facilitate the swap and transfer of danger through reinsurance to Metlife.
This offer was finished in the fourth-quarter of 2021, so contributes to the total durability swap activity in the UK for the in 2015.
We had actually reported on and tape-recorded ₤ 12.7 billion of UK focused pension plan longevity swap arrangements in 2021, all of which are noted in our durability swaps and risk transfer Deal Directory.
This transaction includes around another UK ₤ 2.6 billion to that total, taking 2021 durability swap volumes to approximately ₤ 15.3 billion up until now.
Under the regards to this deal, Metropolitan Tower Life Insurance Company has provided reinsurance for the durability threat related to the approximately $3.5 billion of pension liabilities.
Its the first time Metlife has taken part in a UK pension durability swap deal.
” We are happy MetLife has actually been chosen to reinsure these responsibilities. As MetLifes first pension scheme durability swap deal, this marks a crucial turning point in the advancement of our U.K. durability reinsurance business and highlights MetLifes concentrate on development to meet the customers needs,” described Jay Wang, senior vice president and head of Risk Solutions with MetLifes Retirement & & Income Solutions organization.
” We are also delighted to have been able to build our relationships with Aon and Zurich in this market and are eager to continue the partnership to support pension plan 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 includes considerable capacity and cravings to a currently really busy sector. With continued high need from pension schemes for longevity de-risking solutions, this is extremely welcome and we anticipate another hectic year in 2022.”
Greg Wenzerul, Head of Longevity Risk Transfer at Zurich also said, “We are thrilled to have dealt with MetLife on this latest offer. MetLifes entry to this market, and the particular functions of this deal, are positive for this market as a whole.”
As we discussed the other day, forecasts for durability swap activity in the UK for 2022 suggest an even busier marketplace over the coming months. WTW has actually anticipated ₤ 25 billion of pension associated durability swaps for 2022.
Read about many historical durability swap and reinsurance transactions in our Longevity Risk Transfer Deal Directory.

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