Prudential Retirement, a business unit of Prudential Financial (PRU), announced its fifth longevity reinsurance transaction since 2011 with Rothesay Life Limited and its affiliates.
Under the terms of this new transaction, Prudential will provide reinsurance of longevity risk to Rothesay Life Limited for a block of eight pension schemes. The transaction covers longevity risk associated with pension liabilities of $450 million (approximately equal to 288 million Pounds Sterling) for approximately 25,000 pensioners and deferred members in the U.K.
"Today’s transaction is another example of Rothesay’s leadership in the thriving U.K. market," said Amy Kessler, senior vice president and head of longevity reinsurance at Prudential. "The strong partnership between Rothesay and Prudential supports the growing pension de-risking trend in the United Kingdom and ensures that there is capacity for pension schemes seeking to de-risk."
This is the second longevity reinsurance transaction that Prudential has announced with Rothesay Life in recent months. In August, Prudential announced a $1.7 billion (approximately equal to 1 billion Pounds Sterling) transaction covering 20,000 annuitants.
These transactions follow Prudential’s groundbreaking agreement in July to reinsure $27.7 billion of longevity risk associated with BT Pension Scheme liabilities.
"We are pleased that Rothesay continues to choose and trust us to help secure the retirement benefits for thousands of pensioners," said David Lang, Director, Pension Risk Transfer Actuary for Prudential Retirement.