SCOR adds longevity reinsurance deal to cap year of record volumes

Global reinsurance group  SCOR has taken on a £1.7 billion longevity reinsurance transaction, stacking new volumes on what has been a record year for longevity volumes written by the France-based group.

The current deal covers the risk of longer-than-expected lifespans for over 15,000 pension holders in a defined benefit programme of the Balfour Beatty Pension Fund. SCOR won a tender for the deal organised by Aon and CMS. Zurich UK will act as an intermediary insurer, adopting a “pass-through” structure that facilitates the risk transfer to SCOR as the reinsurer.

The deal follows a £5.5 billion longevity swap transaction with a pension programme at Lloyds Bank announced in March 2022.

"Together, they demonstrate SCOR’s continued growth in the longevity risk transfer market and contribute to a record-breaking year for longevity volumes written by the Group," management said.

SCOR's CEO of life & health Frieder Knüpling said: “This transaction underlines SCOR’s strong appetite to deliver longevity solutions to our clients. Recent world events have brought life and health risks into sharp focus and now, more than ever, we are seeing demand for stability. We are pleased to be supporting the Balfour Beatty pension trustees in bringing additional security to their pension scheme members.”

SCOR's CEO of longevity & financial solutions Rupen Shah commented: “We are delighted with this record year of longevity volumes, an achievement made possible by a terrific team effort. ... We remain committed to the pension de-risking market and look forward to supporting many more clients in the future.”

Did you get value from this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.