Prudential Financial’s business unit, Prudential Retirement has completed a UK-focused longevity reinsurance transaction with the Frankfurt-based lender, Deutsche Bank that has expanded its international reinsurance business.
The deal is Prudential’s third longevity reinsurance deal that will allow the firm to focus on reinsuring scheme risk derived from the UK market.
According to the terms of the transaction, Prudential’s deal covers pension liability values of approximately £500m, over $784m and will be one of several reinsurers of longevity risk to Deutsche Bank’s client, Rolls-Royce Pension Fund.
Prudential’s Longevity Reinsurance business senior vice president and head Amy Kessler said that falling interest rates, market volatility, increasing life expectancy, and accounting and regulatory changes are prompting plan sponsors, around the world, to explore available options to manage their exposure to risk and protect their balance sheets.