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 wonderful news for pension plans. MetLife includes substantial capability and appetite to an already extremely hectic sector. With continued high demand from pension schemes for durability de-risking solutions, this is very welcome and we look forward to another hectic year in 2022.”

Metlife and Zurich have teamed up with Aons Risk Settlement Group to complete a United States $3.5 billion transfer of longevity risk for a UK pension scheme, through an intermediated longevity 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 plan 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 durability reinsurance deal for this offer.
Zurich Assurance Ltd., a UK based Zurich subsidiary, functioned as intermediary, to user interface with the pension and help with the swap and transfer of threat through reinsurance to Metlife.
This deal was completed in the fourth-quarter of 2021, so adds 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 plans in 2021, all of which are noted in our longevity swaps and risk transfer Deal Directory.
This deal includes around another UK ₤ 2.6 billion to that overall, taking 2021 durability swap volumes to roughly ₤ 15.3 billion up until now.
Under the terms of this deal, Metropolitan Tower Life Insurance Company has actually provided reinsurance for the durability risk 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 delighted MetLife has actually been picked to reinsure these obligations. As MetLifes very first pension scheme durability swap deal, this marks a crucial milestone in the evolution of our U.K. durability reinsurance company and highlights MetLifes focus on development to satisfy the customers requirements,” described Jay Wang, senior vice president and head of Risk Solutions with MetLifes Retirement & & Income Solutions organization.
” We are likewise delighted to have 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 unpredictability,” Wang added.
Tom Scott, Associate Partner in Aons Risk Settlement Group, mentioned, “MetLifes entry into the reinsurance market supporting U.K. longevity swaps is wonderful news for pension plans. MetLife includes substantial capacity and hunger to an already really hectic sector. With continued high demand from pension schemes for durability de-risking services, this is very welcome and we anticipate another busy year in 2022.”
Greg Wenzerul, Head of Longevity Risk Transfer at Zurich also said, “We are pleased to have worked with MetLife on this most current offer. MetLifes entry to this market, and the specific functions of this deal, are positive for this market as a whole.”
As we described yesterday, projections 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.
Check out lots of historical durability swap and reinsurance deals in our Longevity Risk Transfer Deal Directory.

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