SCOR reinsures £1bn PIC longevity risk

UK-based specialist insurer Pension Insurance Corporation (PIC) said on July that it concluded a £1 billion longevity reinsurance agreement with SCOR.

The reinsurance deal covers the longevity risk for around 7,000 in-payment lives and, where applicable, their spouses, across six defined benefit pension schemes which completed buy-in transactions with PIC over the past year, according to the statement.

With the addition of SCOR, a global multi-line organisation, PIC now has eight longevity swap reinsurance counterparties. Together with other reinsurance undertaken in the year, PIC has now reinsured more than 70 percent of its total longevity exposure, up from 68 percent at 2016-end.

Khurram Khan, head of longevity risk at PIC, said: “A full market tender process was run with SCOR being the successful reinsurer. PIC is now protected against unexpected longevity increases for another 7,000 lives and can release regulatory capital as a direct result. We have also acquired a new reinsurance partner thereby helping to widen our counterparty relationships under these very long-term contracts.”

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