15 January 2015 News

Prudential in fifth reinsurance deal

Prudential Retirement, a business unit of Prudential Financial, has completed its fifth longevity transaction since 2011 with Rothesay Life and its affiliates.

Prudential will provide reinsurance of longevity risk to Rothesay Life for a block of eight pension schemes. The transaction covers longevity risk associated with pension liabilities of $450 million for approximately 25,000 pensioners and deferred members in the UK.

In August, Prudential announced a $1.7 billion transaction covering 20,000 annuitants.

“Today’s transaction is another example of Rothesay’s leadership in the thriving UK market,” said Amy Kessler, senior vice president and head of longevity reinsurance at Prudential. “The strong partnership between Rothesay and Prudential supports the growing pension de-risking trend in the United Kingdom and ensures that there is capacity for pension schemes seeking to de-risk.”

David Lang, director, pension risk transfer actuary for Prudential Retirement, added: "We are pleased that Rothesay continues to choose and trust us to help secure the retirement benefits for thousands of pensioners.”

Tom Pearce, managing director, Rothesay Life, said: “This latest transaction is a further example of Rothesay Life’s commitment to its pensioners. We’re delighted to build upon our partnership with Prudential as we continue to focus on delivering a secure retirement for our annuitants.”

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