Hannover Re reinsures €2bn of longevity risks

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.”