Metlife and Zurich have actually collaborated 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 durability swap and reinsurance arrangement.Metlife has reinsured the longevity danger, while Zurich stood in the middle of the deal and entered into the durability 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, functioned 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 contributes to the overall longevity swap activity in the UK for the last year.
We had actually reported on and taped ₤ 12.7 billion of UK focused pension plan longevity swap arrangements in 2021, all of which are noted in our longevity swaps and risk transfer Deal Directory.
This transaction includes around another UK ₤ 2.6 billion to that overall, taking 2021 durability swap volumes to around ₤ 15.3 billion up until now.
Under the terms of this deal, Metropolitan Tower Life Insurance Company has actually provided reinsurance for the longevity threat associated with the roughly $3.5 billion of pension liabilities.
Its the very first time Metlife has gotten involved in a UK pension durability swap transaction.
” We are pleased MetLife has been picked to reinsure these responsibilities. As MetLifes very first pension plan durability swap transaction, this marks an essential turning point in the development of our U.K. longevity reinsurance organization and highlights MetLifes concentrate on innovation to meet the customers requirements,” explained Jay Wang, senior vice president and head of Risk Solutions with MetLifes Retirement & & Income Solutions service.
” We are also delighted to have actually had the ability to build our relationships with Aon and Zurich in this market and aspire to continue the partnership to support pension plan de-risking in a time of increased unpredictability,” Wang included.
Tom Scott, Associate Partner in Aons Risk Settlement Group, stated, “MetLifes entry into the reinsurance market supporting U.K. durability swaps is great news for pension schemes. MetLife adds substantial capability and appetite to a currently extremely busy sector. With continued high need from pension schemes for durability de-risking options, this is very welcome and we anticipate another hectic year in 2022.”
Greg Wenzerul, Head of Longevity Risk Transfer at Zurich also stated, “We are pleased to have actually worked with MetLife on this latest offer. MetLifes entry to this market, and the particular functions of this deal, are favorable for this market as a whole.”
As we described the other day, projections for durability swap activity in the UK for 2022 recommend an even busier market over the coming months. WTW has anticipated ₤ 25 billion of pension related longevity swaps for 2022.
Check out many historic longevity swap and reinsurance transactions in our Longevity Risk Transfer Deal Directory.
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 schemes. MetLife adds significant capability and hunger to an already really busy sector. With continued high demand from pension schemes for durability de-risking services, this is very welcome and we look forward to another hectic year in 2022.”