Prudential, PIC Reach $1.2 Billion Longevity Reinsurance Agreement

Prudential and Pension Insurance Corporation have reached their fifth longevity reinsurance transaction since 2015.  In the agreement, Prudential assumes the longevity risk for $1.2 billion (about £900 million) in pension liabilities, covering approximately 4,000 pensioners across four pension schemes. 

The transaction highlights the rebounding 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 is a leader and innovator of such solutions. 

“Prudential is proud to strengthen its growing partnership with Pension Insurance Corporation,” said William McCloskey, Prudential’s head of international longevity reinsurance. “Our teams have worked closely and collaboratively on five transactions worth nearly $5 billion. These agreements not only secure the longevity reinsurance needs of PIC and its pension clients, they also help to secure the retirement benefits of thousands of U.K. pensioners.” 

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