Longevity Swaps News Today

The defined benefit (DB) pensions de-risking market is likely to see one of its biggest years on record in 2023, with at least £40bn in bulk annuity transactions and £20bn in longevity hedges expected to be completed, WTW predicts.

2022 has been another bumper year for longevity swaps. The total value of business written is expected to exceed £15 billion for the third year in a row and with...

Lloyds Banking Group Pensions Trustees has completed a second longevity hedging arrangement, protecting a further £5.5bn of liabilities with Scottish Widows and SCOR.

Record-breaking levels of pension de-risking transactions could be agreed this year amid a burgeoning market, says WTW.

So far, DC plans have largely been focused on the onset of auto-enrolment and changes to the regulatory framework - be it the ‘charge cap, ‘pension freedoms or consultations around ‘value for money, says Annabel Tonry, Executive Director at J.P. Morgan Asset Management (JPMAM).Download In 2015 George Osborne, then the UK Chancellor of the Exchequer, decided that those age over 55 could take much more of their pension in cash. This has since opened up a range of possibilities for DC scheme...

PICA reinsures £6bn of longevity risk for unnamed scheme RSS Feed Our RSS feed is provided for personal use. Re-publication of Professional Pensions articles via RSS on another website is a breach of copyright and is prohibited. If in doubt please contact us.RSS feed Most popular content Events Industry Voice Guides If you already have an account please use the link below to sign in. If you have any problems with your access or would like to request an individual access account please contact ...

There have now been a total of 26 longevity swaps over £1bn announced. The full list, provided courtesy of Willis Towers Watson, is as follows...

Long-term Covid uncertainty makes longevity hedging more valuable The uncertainty surrounding the potential impact of so-called long Covid and behavioural changes heightens the need for schemes to increase their longevity hedging, says Prudential Financial. While most schemes will have seen a limited change in liabilities directly due to the mortality effects of the pandemic, the longer-term consequences of the pandemic on younger generations is unclear. Fatalities due to the disease have large...

Around £1trn of pension risk could be insured by just over a decade’s time as bulk annuity volumes grow rapidly, also boosting insurers’ rankings in the FTSE 100, according to Hymans Robertson.