Prudential strikes $1.8bn reinsurance deal with Scottish Widows
The Prudential Insurance Company of America (PICA) and UK-based Scottish Widows have agreed to their first-ever longevity reinsurance agreement. PICA has assumed the longevity risk for approximately $1.8 billion (£1.3 billion) of annuity liabilities held by Scottish Widows.
“Prudential is privileged to be chosen by Scottish Widows as it seeks to efficiently manage its longevity risk over the coming decades,” said David Lang, Prudential’s lead negotiator for this transaction.
Michael Downie, the finance director, annuities and investment strategy at Scottish Widows, added: “Throughout the negotiations, PICA took the time to understand our needs and actively tailored their offering to meet our requirements.”
Amy Kessler, Prudential’s head of longevity reinsurance, said: “The insurer and reinsurer market continues to expand and evolve, and we expect 2018 to continue recent growth trends as managing risk capital becomes increasingly impactful.”
Prudential operates in the pension reinsurance market with more than $45 billion in international reinsurance transactions since 2011, including the largest longevity risk transfer transaction on record, a $27.7 billion transaction involving the BT Pension Scheme, according to a Feb. 5 press release.
Join us at Intelligent Automation in Insurance - London 2018. Book by Feb 28th and you could save £300.
More of today's news
Aon Benfield appoints UK chief operating officer
Fairfax acquires Canadian business of troubled Carillion
More articles
Copyright © intelligentinsurer.com 2024 | Headless Content Management with Blaze