Browsing: Longevity Risk
Longevity and Mortality Investor’s coverage of bulk purchase annuity transactions. We are a leading source globally for longevity risk analysis, commentary and insights.
The estimated retiree pension risk transfer cost is now 101.6% of a plan’s accumulated benefit obligation.
RGA is to reinsure $32bn of a diversified mix of life insurance products and expects to deploy $1.5bn of capital into this reinsurance transaction at closing.
The deal covers a €2bn block of in-force individual annuity life policies.
The transaction secures the benefits of all eight deferred members and eight pensioner members, completing the buy-in of all scheme liabilities.
The deal insures the benefits of 181 Scheme members, comprising 70 deferred members and 111 pensioners.
The SHPAA would have allowed seniors to put the proceeds of a life settlement into a tax-deferred/tax-free savings account for the senior and their family to use for health care and long-term care expenses.
Growth in the purchase of bulk annuity contracts by small defined benefit (DB) pension schemes over the past couple of years has been accompanied by the emergence of templated transfer processes that speed the closure of deals, enabling insurers to execute more of them.
The increasing role – and influence – of ‘private equity’ firms in the US pension risk transfer (PRT) market in recent years has caught the attention of the media, regulators, and litigators.
The ‘buyer’ of a bulk annuity contact is the scheme’s trustees, who are required to take formal advice as part of the process. However, the views of the sponsor are important for any bulk annuity purchase, and they should be involved from the outset, particularly if additional funds need to be paid into the scheme.
Mark Sharkey, BPA Origination Lead, Royal London shares his views on the state of the market and its outlook for 2025.