Browsing: Longevity and Mortality Risk Transfer

Under the agreement, more than 400 members of the Scheme and approximately £40m of assets will transfer to Clara.

The transaction covered £400m of assets and secures the future pension benefits of more than 3,000 pensioners and 4,000 deferred scheme members.

During July, the estimated cost to transfer retiree pension risk to an insurer in a competitive bidding process in the US inched up by 10 basis points, from 99.6% to 99.7% of a plan’s accounting liabilities.

Following the full scheme bulk purchase annuity buy-in for the scheme in June 2025, Utmost Life and Pensions has issued 362 individual buy-out policies to scheme members and dependants.

£1.65bn bulk purchase annuity buy-in secures benefits for all 16,400 scheme members.

Increased competition for defined benefit pension schemes’ de-risking business in the UK has resulted in many insurers offering value-added incentives to better attract trustees and sponsors.

Recent S&P Global stress test shows UK life insurers with a coverage ratio of 200% could comfortably withstand an extreme scenario that assumes a default rate of about 11% in the illiquid portion of a hypothetical BPA insurer portfolio.

Schepps offers his views on the current state of the longevity architecture in the US.

Moret has over 20 years of experience in the pensions and insurance industry, including 12 years in the UK BPA market.

£58m bulk purchase annuity partial buy-in secures the pension benefits of the 375 members who were not already insured.