Nationale-Nederlanden (NN Life) has completed a longevity swap reinsurance agreement with Pacific Life Re. The deal covers a €2bn block of in-force individual annuity life policies and includes an ongoing commitment to reinsure future new business through a flow arrangement.
The agreement builds on the extensive portfolio of pension risk transfer and flow deals delivered in other countries and marks Pacific Life Re’s first longevity reinsurance transaction in the Dutch market, a key area of growth for the company.
“We’re delighted to announce the start of a new partnership with NN Life. We have successfully used our longevity swap and flow experience and been able to apply this to the Dutch individual annuity market. This has allowed us to develop a bespoke solution that supports NN Life in delivering on their commitments to customers,” said Phill Beach, Executive Vice President of Savings & Retirement at Pacific Life Re.
“This deal underscores our efforts to continually look for value creating opportunities, reduce longevity risk in the Dutch market, and actively manage our balance sheet,” added Peter Brewee, Chief Risk Officer at NN Life.
This deal was supported by global professional services firm Eversheds Sutherland.