Prudential Insurance Company of America (PICA) has completed a longevity reinsurance transaction with Pension Insurance Corporation (PIC), a UK-based specialty insurer of defined benefit pensions.

The $1.1bn worth deal covers longevity risk related for approximately 2,900 pensioners across two sections of the Aon Retirement Scheme. The transaction is the third PICA has engaged with UK specialty insurer PCI.

Prudential Financial longevity reinsurance vice president, Bill McCloskey, said: "This third reinsurance transaction with Pension Insurance Corporation demonstrates our success in and commitment to delivering a positive experience for our clients.

"It also highlights the growing demand for strategies to manage longevity risk along with the need to create reinsurance solutions in support of continued growth of the market."

The transaction marks PIC’s first sizeable pension insurance transaction under the new Solvency II regime.

McCloskey said: "This deal truly demonstrates that large buy-ins priced under Solvency II are still an attractive option for trustees."