Pensions - Articles - Hannover Re assumes further UK longevity risks


Hannover Re assumes further portfolio of longevity risks in the United Kingdom

 Hannover Re has concluded another block transaction for longevity risks in the United Kingdom. Pension obligations in the amount of GBP 3.2 billion assumed by the British insurer Legal & General are to be transferred mostly to Hannover Re. Under this transaction Hannover Re assumes only the biometric risk, not the investment risk.

 Hannover Re will generate total premium income of roughly GBP 2.2 billion from this longevity transaction, with gross premium of around GBP 100 million attributable to the 2013 financial year. The assumed portfolio will deliver an attractive return for Hannover Re.

 "Longevity risks are also interesting for our company because they are negatively correlated with mortality risks and hence promote better diversification of our portfolio", Chief Executive Officer Ulrich Wallin noted.

 Hannover Re has been active in the area of longevity risks since the mid-1990s. Longevity swaps hedge the risk that the life expectancy may prove to be higher than anticipated. In its block transactions for pension funds Hannover Re concentrates primarily on the blue-collar workers' segment.

Back to Index


Similar News to this Story

State Pension Age Review assumes triple lock remains
But could be ‘false comfort’ for younger generations. Continuing triple lock could come at the expense of further and faster increases to State Pensio
Comments on DWP papers and announcements
Hymans Robertson comments on the documents and papers announced by the DWP ahead of Phase Two of the Pensions Review.
Pensions Commission must rethink pensions from the bottom up
Peoples Pension, ACA, XPS and Hymans Robertson comment that the Pensions Commission must rethink pensions from the bottom up

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.