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, stated, “MetLifes entry into the reinsurance market supporting U.K. longevity swaps is great news for pension schemes. MetLife includes substantial capability and hunger to an already extremely busy sector. With continued high need from pension schemes for durability de-risking services, this is very welcome and we look forward to another busy year in 2022.”

Metlife and Zurich have teamed up with Aons Risk Settlement Group to complete an US $3.5 billion transfer of longevity threat for a UK pension plan, through an intermediated longevity swap and reinsurance arrangement.Metlife has reinsured the longevity threat, while Zurich stood in the middle of the offer and entered into the durability swap arrangement with the unnamed UK pension.
Metlife said that its Metropolitan Tower Life Insurance Company subsidiary participated in what is its very first UK pension focused durability reinsurance transaction for this offer.
Zurich Assurance Ltd., a UK based Zurich subsidiary, acted as intermediary, to 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 contributes to the total longevity swap activity in the UK for the last year.
We had reported on and tape-recorded ₤ 12.7 billion of UK focused pension plan longevity swap arrangements in 2021, all of which are listed in our durability swaps and run the risk of transfer Deal Directory.
This transaction adds around another UK ₤ 2.6 billion to that overall, taking 2021 longevity swap volumes to around ₤ 15.3 billion so far.
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 actually taken part in a UK pension durability swap transaction.
” We are happy MetLife has been chosen to reinsure these obligations. As MetLifes very first pension plan longevity swap deal, this marks an important milestone in the development of our U.K. longevity reinsurance organization and highlights MetLifes concentrate on development to fulfill the customers requirements,” discussed Jay Wang, senior vice president and head of Risk Solutions with MetLifes Retirement & & Income Solutions business.
” We are also pleased to have actually had the ability to build our relationships with Aon and Zurich in this market and aspire 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, mentioned, “MetLifes entry into the reinsurance market supporting U.K. durability swaps is wonderful news for pension schemes. MetLife adds significant capability and appetite to an already extremely busy sector. With continued high need from pension plans for durability de-risking solutions, this is extremely welcome and we look forward to another hectic year in 2022.”
Greg Wenzerul, Head of Longevity Risk Transfer at Zurich also said, “We are happy to have dealt with MetLife on this most current deal. MetLifes entry to this market, and the particular features of this transaction, are favorable for this market as a whole.”
As we described yesterday, projections for longevity 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 longevity swaps for 2022.
Check out about lots of historical longevity swap and reinsurance deals in our Longevity Risk Transfer Deal Directory.

Leave a Reply

Your email address will not be published.

error: Content is protected !!