Swiss Re has completed a £1.4bn ($2.2bn) longevity insurance contract for AkzoNobel’s UK pension fund, which will cover close to 17 000 individuals and their future contingent beneficiaries.
The agreement covers individuals who were members of the Akzo Nobel (CPS) Pension Scheme at 1 August 2011.
Costas Yiasoumi, Head Longevity Solutions, Swiss Re Corporate Solutions, said: “Whereas the UK pension longevity market tends to be dominated by intermediaries who write and then sell on the exposure, this deal stands out in that all of the longevity exposure is held on our own balance sheet.”
Swiss Re said the latest transaction confirms that pension funds and insurers are becoming more comfortable with longevity solutions.
Yiasoumi said: “Longevity contracts are very long-dated and pension fund trustees need counterparties that are in this market for the long haul.”
Longevity insurance is designed to pay the policyholder a benefit if he or she survives to a pre-established future age.