Prudential has concluded $2.6 billion in previously undisclosed longevity reinsurance contracts

Prudential has concluded $2.6 billion in previously undisclosed longevity reinsurance contracts, an important signal of an unprecedented 2019 start to the U.K. pension risk transfer market. As part of these transactions, Prudential is assuming the longevity risks for approximately 16,000 pensioners.

"Pension schemes that can afford to de-risk have raced forward in the opening months of 2019, taking advantage of the window before Brexit to reduce their risks and lock in gains," said Amy Kessler, head of longevity reinsurance at Prudential Financial. "Brexit brings increasing levels of uncertainty that could wash away recent market gains and funding improvements, putting de-risking out of reach. But with funding at the highest levels in a decade, pensions are deciding to de-risk at an unprecedented pace."

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