SCOR strikes £1.2bn PIC longevity deal
French reinsurer SCOR has completed a £1.2 billion longevity reinsurance deal with Pension Insurance Corporation (PIC), a specialist insurer of defined benefit pension funds.
The agreement covers the longevity risk for around 8,000 in-payment lives and, where applicable, their spouses, across six separate defined benefit pension schemes.
Earlier in 2017, PIC had closed a £1 billion longevity reinsurance agreement with SCOR.
PIC said its longevity reinsurance business volumes for 2018 currently exceed £4 billion and are expected to exceed a record £5 billion by the end of the year. The company claims to have reinsured over 70 percent of its total longevity exposure and has now signed treaties with eleven highly rated reinsurance counterparties.
“We are extremely pleased to have supported PIC in their continued efforts to help improve the security of retirees’ pensions," said Rupen Shah, global head of longevity at SCOR. "It was a pleasure working with the PIC team and we are particularly happy that the investment put in by both teams during our first transaction last year paid dividends in helping to complete this deal in such an effective and timely manner.”
Khurram Khan, head of longevity risk at PIC, said: “We are delighted to have signed this second agreement with SCOR – characterised by both parties working in a highly efficient and collaborative manner. As UK bulk annuity market volumes continue to increase, reinsurance transactions need to become smoother and offer wider coverage. It is pleasing to see our reinsurance partners responding to these changing demands.”
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