Zurich, Metlife strike massive longevity reinsurance deal in UK market

Metlife has completed a “significant” longevity reinsurance deal via an independent UK regulated insurer  Zurich Assurance, a unit of  Zurich Insurance Group.

The transaction, which was completed in Q4 2021, was MetLife’s first longevity swap of UK pension scheme liabilities.

Under the terms of the agreement, Metropolitan Tower Life Insurance Company will provide reinsurance for longevity risk associated with approximately $3.5 billion of pension liabilities.

Aon was the lead adviser to the scheme for the transaction.

"As MetLife’s first pension scheme longevity swap transaction, this marks an important milestone in the evolution of our U.K. longevity reinsurance business and highlights MetLife’s focus on innovation to meet the customers’ needs,” said Jay Wang (pictured), senior vice president and head of Risk Solutions with MetLife’s Retirement & Income Solutions business.

“We are also delighted to have been able to build our relationships with Aon and Zurich in this market and are eager to continue the partnership to support pension scheme de-risking in a time of increased uncertainty,” he added.

Tom Scott, associate partner in Aon’s Risk Settlement Group, commented: “ MetLife's entry into the reinsurance market supporting U.K. longevity swaps is fantastic news for pension schemes. MetLife adds substantial capacity and appetite to an already very busy sector. With continued high demand from pension schemes for longevity de-risking solutions, this is very welcome and we look forward to another busy year in 2022.”

Greg Wenzerul, head of longevity risk Transfer at Zurich, added: “We are delighted to have worked with MetLife on this latest deal. MetLife’s entry to this market, and the specific features of this transaction, are positive for this market as a whole.”

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