Dutch insurance and asset management firm NN Group has signed €13bn ($14.2bn) worth of longevity risk transfer deals with Prudential Financial and Swiss Re.
The Rotterdam business said in a 19 December press release the transaction was struck by its subsidiary NN Life.
The deal transfers the longevity risk contained in 300,000 policies in NN Group’s portfolio of companies, which includes insurer Delta Lloyd.
The reinsurance agreements will come into force on 31 December 2023 and will stay in place until the portfolio has run off. NN Life will continue to administer and guarantee the policies.
The transactions with Prudential Financial and Swiss Re will improve NN Life’s Solvency II ratio by 17 percentage points; the corresponding figure for NN Group is eight percentage points.
Unaudited Solvency II ratios for NN Group and NN Life were 205% and 187%, respectively, in September 2023.
NN Group said it would also receive an unspecified capital release.
Prudential Financial said its subsidiary, The Prudential Insurance Company of America, would take on a $9.2bn chunk of the transferred longevity risk, covering 200,000 policies.
The deal marks the US firm’s first foray into the Dutch longevity market.
The longevity risk contained in the other 100,000 policies will be transferred to Swiss Re, which has not yet publicly commented on the deal.
This week also saw two smaller scale pension risk transfers take place in the UK market.
On 18 December, Pension Insurance Corporation (PIC) announced it had completed a $31m full scheme buy-in with The Westminster Abbey 1972 Retirement and Death Benefits Scheme.
Barnett Waddingham and Pinsent Masons advised the scheme’s trustees while PIC received legal advice from CMS.
The following day news emerged of a second ecclesiastical transaction, with Aviva providing a $22m full buy-in for the St Paul’s Cathedral Pension and Life Assurance Scheme.
The deal was conducted through LCP’s Streamlined Service which facilitates transactions for smaller pension funds.
Stephenson Harwood and Options Pensions advised the St Paul’s pension scheme trustees.