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. durability swaps is wonderful news for pension schemes. MetLife includes substantial capacity and hunger to an already very busy sector. With continued high need from pension schemes for durability de-risking services, this is really welcome and we look forward to another hectic year in 2022.”

Metlife and Zurich have collaborated with Aons Risk Settlement Group to finish an US $3.5 billion transfer of longevity danger for a UK pension plan, through an intermediated longevity swap and reinsurance arrangement.Metlife has actually reinsured the durability danger, while Zurich stood in the middle of the offer and got in into the longevity swap arrangement with the unnamed UK pension.
Metlife stated that its Metropolitan Tower Life Insurance Company subsidiary entered into what is its first UK pension focused longevity reinsurance deal for this offer.
Zurich Assurance Ltd., a UK based Zurich subsidiary, acted as intermediary, to user interface with the pension and assist in the swap and transfer of threat through reinsurance to Metlife.
This deal was finished in the fourth-quarter of 2021, so adds to the total durability swap activity in the UK for the in 2015.
We had reported on and tape-recorded ₤ 12.7 billion of UK focused pension scheme durability swap arrangements in 2021, all of which are noted in our durability swaps and run the risk of transfer Deal Directory.
This deal includes around another UK ₤ 2.6 billion to that total, taking 2021 longevity swap volumes to around ₤ 15.3 billion so far.
Under the terms of this deal, Metropolitan Tower Life Insurance Company has supplied reinsurance for the longevity threat related to the approximately $3.5 billion of pension liabilities.
Its the very first time Metlife has actually gotten involved in a UK pension longevity swap deal.
” We are happy MetLife has been picked to reinsure these obligations. As MetLifes very first pension plan durability swap transaction, this marks an important milestone in the evolution of our U.K. durability reinsurance organization and highlights MetLifes focus on development to satisfy the customers requirements,” explained Jay Wang, senior vice president and head of Risk Solutions with MetLifes Retirement & & Income Solutions business.
” We are likewise thrilled to have actually been able to construct 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 uncertainty,” Wang included.
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 plans. MetLife adds substantial capability and hunger to a currently really hectic sector. With continued high need from pension plans for durability de-risking options, this is very welcome and we eagerly anticipate another hectic year in 2022.”
Greg Wenzerul, Head of Longevity Risk Transfer at Zurich likewise said, “We are thrilled to have dealt with MetLife on this latest offer. MetLifes entry to this market, and the specific functions of this deal, are positive for this market as a whole.”
As we explained yesterday, forecasts for longevity swap activity in the UK for 2022 recommend an even busier marketplace over the coming months. WTW has actually anticipated ₤ 25 billion of pension related durability swaps for 2022.
Read about numerous historical longevity swap and reinsurance transactions in our Longevity Risk Transfer Deal Directory.

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