MetLife enters UK longevity reinsurance market with new deal
Insurer MetLife has completed a longevity reinsurance deal with Pension Insurance Corporation (PIC), a move intended to establish itself in the 'robust' UK market.
The transaction marks the company's entry into the UK longevity reinsurance market.
Under the deal, Metropolitan Tower Life Insurance Company, a subsidiary of MetLife, will provide reinsurance to PIC for longevity risk associated with approximately £280 million of pension liabilities.
“This transaction marks an important milestone in MetLife’s strategy and gives us the opportunity to apply our experience managing risk to a new market,” said Graham Cox, executive vice president and head of retirement & income solutions at MetLife. “With this transaction, MetLife is establishing itself as a reinsurance solution for direct insurers in the UK While this is MetLife’s initial step into the U.K. longevity reinsurance market, our long history and mortality expertise position us well for the future.”
Cox added: “In 2019, there were more than £40 billion of U.K. pension risk transfer transactions completed — this robust market presents an opportunity for reinsurers to support direct insurers by managing their longevity risk. We are pleased to be working with PIC and look forward to building on this relationship.”
Khurram Khan, head of longevity risk at PIC, commented: “It’s great to see another well-rated, global corporation complete a debut transaction within the UK bulk annuity market. This is a positive development for both PIC and for market capacity as a whole.”
