Prudential Financial closes $3.2 billion in new longevity reinsurance agreements

Prudential has concluded $3.2 billion in previously undisclosed longevity reinsurance contracts, a further sign that pension de-risking activity in the U.K. is continuing at a brisk pace. As part of these transactions, The Prudential Insurance Company of America (PICA) assumes the longevity risk for approximately 13,200 retirees.

The market for pension de-risking solutions is expanding at its fastest pace in years, in part because such activity has become more affordable than at any point in the last decade. The affordability of pension buy-ins and buy-outs is due in part to the improved funded status of U.K. schemes, which, on average, were at or near full-funding in the summer of 2018. This improvement in funded status represents a marked increase over the last two years.

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