UK. Record £7 billion of longevity risk reinsured by PIC in 2019
Pension Insurance Corporation (PIC) has completed £5.8 billion (USD 7.4 billion) of pension buy-ins and buyouts and has reinsured a record £7 billion (USD 8.9 billion) of longevity risk so far in 2019.
The specialist insurer of defined benefit pension funds has highlighted a very active year for the pension risk transfer market, which has seen PIC conclude a huge £5.8 billion of buyouts and buy-ins with the trustees of these schemes.
During 2019, PIC has also reinsured £7 billion of longevity reinsurance, which it states includes the reinsurance of £1.5 billion (USD 1.9 billion) of deferred (non-pensioner) lives.
The specialist insurer notes that this is the first time such a significant volume of deferred lives have been reinsured in any one period, adding that it signals increased capacity for this type of risk within the reinsurance sector.
Jay Shah, Chief Origination Officer at PIC, commented: “This has been a record-breaking first half for PIC both in terms of the amount of new business transacted and longevity risk re-insured. On the longevity reinsurance we are especially pleased to have insured such a large amount of deferred lives.
Read more @Reinsurancene
