Prudential, PIC Reach $1.2 Billion Longevity Reinsurance Agreement

Prudential and Pension Insurance Corporation (PIC) have reached their sixth longevity reinsurance transaction since 2015. In the agreement, Prudential assumes the longevity risk for $1.2 billion (£900 million) in pension liabilities, covering approximately 7,500 pensioners.

The transaction highlights the strong demand for pension de-risking solutions in the U.K., and the desire of many U.K. pension insurers to manage their risks and capital using longevity reinsurance. Prudential and PIC have both been leaders and innovators in providing de-risking solutions.

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