Under the transaction, RGA helps to protect the UKRF from the financial risk of an unexpected increase to life expectancy for current pensioners.
The Barclays tower in London. (Credit: Wikipedia.org/Matt Brown.)
Reinsurance Group of America, Incorporated (RGA) has announced the completion of a £5billion (approximately $6.7 billion at current exchange rates) longevity swap with the Trustee of the Barclays Bank UK Retirement Fund (UKRF). Under the transaction, RGA helps to protect the UKRF from the financial risk of an unexpected increase to life expectancy for current pensioners.
“RGA is delighted to partner with the Trustee of the Barclays Bank UK Retirement Fund on a transaction that demonstrates RGA’s dedication to working with clients in the UK, and around the world, to meet their risk management objectives,” said Larry Carson, Executive Vice President, Global Financial Solutions, RGA.
“In addition to the material reduction of deficit revealed at the 2019 actuarial valuation, the longevity swap is another significant step in our de-risking journey for the UKRF, improving benefit security for all members,” said Peter Goshawk, the Chairman of the Trustee. “I would like to thank Barclays for their support on this project and also to thank the Barclays’ pension team, RGA, and our advisers for helping us to complete a successful transaction.”
The transaction between RGA and the UKRF closed Friday, December 11. Additional terms of the transaction are not being disclosed.
Source: Company Press Release