Hannover Re has assumed £1.6 billion (€2 billion) of pension liabilities in cooperation with UK-based Pension Insurance Corporation.
The reinsurer said that it has assumed, for the most part, the liabilities and will assume only the biometric risk, not the investment risk.
It expects to generate total premium income of around €1.9 billion from this transaction. Gross premium of €43 million is anticipated for the 2014 financial year.
Ulrich Wallin, chief executive officer, said: "We expect to see further attractive opportunities in longevity business because it is likely that companies will increasingly look for ways of limiting their pension liabilities.”
To continue reading, you need a subscription to Intelligent Insurer. Start a subscription today for £655.
In-house feature articles, the archive and expert comment require a paid subscription. Subscribe now.
Want to give it a try? We are offering a two week free trial to the Intelligent Insurer website – register and select “Two Week Free Trial” to begin access to the full Intelligent Insurer archive and read the latest news, features and expert comment. Begin your free trial here.
Is your 2 week free trial about to end? Upgrade to a 12 month subscription for £655 now.
If you have already subscribed please login.
If you have any technical issues please contact support.
Hannover Re, Pension Insurance Corporation, Europe, Ulrich Wallin