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Swiss Re signs pension longevity deal with RBPF

Swiss Re has agreed to provide the Royal County of Berkshire Pension Fund with protection against the uncertainty associated  with longevity risk.

The deal, the reinsurer’s first, will provide protection against £1bn in pensioner liabilities.

The contract transfers the longevity risk for RBPF’s existing pensioners through a straightforward insurance policy, covering 11 000 pensions of the fund.

RBPF retains legal ownership of its assets and complete control over its investment strategy, while Swiss Re insures the actual floating annuity benefits to members, the cost of which depends on how long those pensioners live. 

Swiss Re head of life and health Christian Mumenthaler says: “We are very proud to announce this innovative transaction, because it is not only Swiss Re’s first longevity protection written for a pension fund, but the first pure longevity risk transfer written for any governmental body worldwide.”

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