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 schemes. MetLife adds substantial capacity and cravings to a currently really busy sector. With continued high demand from pension plans for longevity de-risking services, 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 finish a United States $3.5 billion transfer of durability threat for a UK pension plan, through an intermediated longevity swap and reinsurance arrangement.Metlife has actually reinsured the durability risk, while Zurich stood in the middle of the deal and entered into the longevity swap plan with the unnamed UK pension.
Metlife said that its Metropolitan Tower Life Insurance Company subsidiary got in into what is its very first UK pension focused durability reinsurance transaction for this offer.
Zurich Assurance Ltd., a UK based Zurich subsidiary, served as intermediary, to interface with the pension and facilitate the swap and transfer of risk through reinsurance to Metlife.
This offer was finished in the fourth-quarter of 2021, so includes to the overall longevity swap activity in the UK for the in 2015.
We had actually reported on and recorded ₤ 12.7 billion of UK focused pension plan longevity swap plans in 2021, all of which are listed in our durability swaps and risk transfer Deal Directory.
This deal adds around another UK ₤ 2.6 billion to that overall, taking 2021 longevity swap volumes to around ₤ 15.3 billion up until now.
Under the regards to this deal, Metropolitan Tower Life Insurance Company has actually offered reinsurance for the durability threat connected with the roughly $3.5 billion of pension liabilities.
Its the very first time Metlife has participated in a UK pension longevity swap deal.
” We are delighted MetLife has been chosen to reinsure these responsibilities. As MetLifes very first pension scheme durability swap transaction, this marks an important turning point in the evolution of our U.K. longevity reinsurance service and highlights MetLifes concentrate on innovation to fulfill the clients requirements,” explained Jay Wang, senior vice president and head of Risk Solutions with MetLifes Retirement & & Income Solutions company.
” We are likewise thrilled to have actually had the ability to build 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 uncertainty,” Wang added.
Tom Scott, Associate Partner in Aons Risk Settlement Group, stated, “MetLifes entry into the reinsurance market supporting U.K. longevity swaps is wonderful news for pension schemes. MetLife includes considerable capability and hunger to an already very busy sector. With continued high demand from pension plans for durability de-risking options, this is very welcome and we look forward to another busy year in 2022.”
Greg Wenzerul, Head of Longevity Risk Transfer at Zurich likewise stated, “We are thrilled to have actually dealt with MetLife on this newest deal. MetLifes entry to this market, and the particular features of this deal, are favorable for this market as a whole.”
As we described yesterday, forecasts for durability swap activity in the UK for 2022 recommend an even busier marketplace over the coming months. WTW has anticipated ₤ 25 billion of pension related durability swaps for 2022.
Check out lots of historical longevity swap and reinsurance transactions in our Longevity Risk Transfer Deal Directory.

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