Prudential finalises $1.7bn new longevity reinsurance deals in first half 2020

Prudential Retirement, a business unit of Prudential Financial, closed $1.7 billion in new longevity reinsurance transactions during the first half of the year.

The company believes that the UK market has remained resilient during the ongoing COVID-19 pandemic. Prudential sees a "robust pipeline" in the UK for the second half of 2020, with the longevity reinsurance market ending the year strong.

“Innovation comes in many forms and this spring, we found ourselves quickly adapting to an entirely virtual environment,” said Rohit Mathur, vice president and head of international transactions for Prudential Retirement. “While we are now in the midst of incredible uncertainty with the coronavirus, such uncertain times have strengthened our conviction that pension de-risking is an all-weather solution for our institutional client base. For those pension schemes that had de-risked their asset portfolio and that were ready to transact before COVID, there was nothing holding them back from moving forward with their deals.”

“Volatile markets often bring opportunity, so it pays to be prepared," he added.

Tom Cahill, vice president, longevity reinsurance, Prudential Retirement, said: “The market is functioning very smoothly, and the smaller end of the market has been quite active. We are proud to have reinsured the risk of many individual schemes in the first half of 2020, including one stand-alone mid-sized transaction and well over a dozen smaller schemes through our flow reinsurance offerings. We are especially proud to be supporting a new insurer on our market-leading flow reinsurance platform.”