Prudential Retirement,and Rothesay Life Plc, reaffirmed their growing partnership by agreeing to their sixth longevity reinsurance transaction since 2011. In the agreement, Prudential assumes the longevity risk for $1.2 billion (about £960 million) in pension liabilities, covering approximately 22,500 pensioners across eight pension plans.
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The transaction underscores the thriving market for U.K. pension de-risking and the continuing focus among U.K. group annuity writers to optimize capital and manage risk with longevity reinsurance solutions. Prudential is a recognized leader and innovator for such solutions.
“Prudential is very proud to build upon its growing partnership with Rothesay Life,” said Amy Kessler, head of Prudential Retirement’s Longevity Risk Transfer business. “Through six years and six transactions, our teams have worked consistently and collaboratively to meet Rothesay’s longevity reinsurance needs and to help secure the retirement benefits for thousands of U.K. pensioners.” The two companies struck their five previous longevity reinsurance agreements between 2011 and 2014.
Said Tom Pearce, managing director at Rothesay Life, “Rothesay is delighted to have completed this transaction with Prudential, building upon the longstanding relationship between the two firms. Entering into this agreement further underscores our proactive approach to risk management as we provide for the secure retirement of thousands of annuitants.”
David Lang, vice president of product development, who led the transaction for Prudential Retirement, added, “The growing U.K. market for pension de-risking has created a significant need for reinsurance solutions. As part of our long-term partnership, Rothesay consistently taps into Prudential’s longevity reinsurance capacity and expertise to support its market-leading pension risk transfer business in the U.K.”
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