Riskwatch: A roundup up of the latest derisking transactions, including Northern Bank Pension Scheme’s two buy-in transactions with Aviva, and Phoenix Group’s two longevity reinsurance transactions with a MetLife subsidiary.
Northern Bank Pension Scheme agrees two buy-ins with Aviva
The circa £1.5bn Northern Bank Pension Scheme has completed two buy-in transactions worth a total of £257m with Aviva Life and Pensions. The first transaction of around £227m was completed in September 2021 and the second transaction insured a further £30m of recently retired pensioners in December 2021. Aviva will insure the defined benefit pension liabilities of 800 members in total, removing the investment and longevity risk of these members from the scheme. The two buy-in transactions were completed using an umbrella contract, which will provide an efficient basis for future transactions, Aviva stated. The scheme’s trustee was advised by LCP and Sackers, while Aviva received legal support from DLA Piper.
This article originally appeared on MandateWire.com
Phoenix Group completes two longevity reinsurance transactions
The £304.4bn life and pensions consolidator Phoenix Group has completed two longevity reinsurance transactions, worth approximately $2.4bn (£1.8bn), with Metropolitan Tower Life Insurance Company, a subsidiary of MetLife. The two transactions were completed in the fourth quarter of 2021. Jay Wang, senior vice-president and head of risk solutions for MetLife’s Retirement & Income Solutions business, said: “Despite the continuing uncertainty around the pandemic, the UK pensions and longevity risk transfer markets remain resilient, and we are excited to continue to grow our presence in this space.”
This article originally appeared on MandateWire.com
