Longevity and Pension Risk Transfer Solutions

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Reduce your exposure to longevity risk associated with life annuities.



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Assessing future life expectancy and predicting long-term asset returns can be challenging.

Ë¿¹ÏÊÓƵAPP is equipped with both the technical expertise and financial security to manage risks for as long as policyholders survive. The evaluation and management of longevity risk, in particular, requires in-depth expertise. Rising life expectancy is a risk, which may:

  • Be more difficult to diversify than asset performance
  • Slowly and irreversibly erode future earnings
  • Transform the balance sheet amid medical advances and lifestyle changes

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The evaluation and management of longevity risk requires in-depth expertise. 

Longevity risk transfer has become widely used by insurance companies in various markets. Longevity risk is a key component of any product offering that guarantees some form of lifetime income to an individual.

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How Is Changing Life Expectancy Affecting Projected Lifetime Annuity Cash Flows?

Longevity Solutions
Future developments such as medical advances, lifestyle changes, and improved healthcare access have a significant impact on life expectancy, and therefore the economic value of current pension obligations.
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How Can Longevity Risk Transfer Help My Organization?


We have a long track record of crafting tailored solutions for partners’ unique needs. Ë¿¹ÏÊÓƵAPP supports insurance carriers’ new business ambitions by enhancing their capacity to pursue more and/or bigger projects and diversify risk exposures. Ë¿¹ÏÊÓƵAPP, as a partner, offers pricing technology and risk management expertise. The solutions developed meet a combination of capital management, new business production, and risk transfer needs.

New Business Support

Ë¿¹ÏÊÓƵAPP supports insurance carriers’ new business ambitions by enhancing their capacity to pursue more and/or bigger projects and diversify risk exposures. Ë¿¹ÏÊÓƵAPP, as a partner, offers pricing technology and risk management expertise. The solutions developed meet a combination of capital management, new business production, and risk transfer needs.

In-Force Management

Insurance portfolios with embedded longevity risk take decades to run off and can consume a significant proportion of an insurer’s risk and/or capital budget. Reinsurance solutions enable Ë¿¹ÏÊÓƵAPP’s partners to exit business lines, rebalance desired risk profiles, and recycle capacity into different or new ventures.

LV = Annuity Business Reinsurance Press Release

Manulife Longevity Transaction Press Release

Pension Plan Longevity De-risking

While a buy-out and full termination may be the end goal of any pension plan’s exit strategy, there are several intermediate options available to plans that wish to take steps in their de-risking process. Longevity risk transfer is a popular choice to offload an otherwise non-Hedgeable risk, stabilize liability profiles, and simplify investment strategies. Unlike a plan termination, Ë¿¹ÏÊÓƵAPP’s longevity de-risking solutions do not require fully funded status.

Sun Life Canada / Bell Canada Longevity Transaction

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Lipovics and Longevity

Why Ë¿¹ÏÊÓƵAPP? 

 

Ë¿¹ÏÊÓƵAPP aims to be your organization’s partner of choice and longevity expert. Through our significant global mortality business, we have access to insights and risk diversification that translate into benefits for our clients. We are a global market leader in addressing longevity and pension risk transfer needs from transacting with traditional insurance companies, banks, and pension plans to reinsuring both standard and medically underwritten business globally.

Ë¿¹ÏÊÓƵAPP executed its first longevity reinsurance transaction in 2008 in the United Kingdom. Since then, Ë¿¹ÏÊÓƵAPP’s Global Financial Solutions team has expanded its longevity risk transfer solutions set for clients in the U.S., Canada, the Netherlands, France, Ireland, and Spain.

In Canada, Ë¿¹ÏÊÓƵAPP executed the first in-force longevity transaction in 2010 and the first longevity transaction including an underlying pension plan in 2015. Drawing on the extensive knowledge gained from other markets, Ë¿¹ÏÊÓƵAPP supported the U.S. Pension Risk Transfer market by executing the first longevity transaction in the U.S. in 2018.

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You May Also Be Interested In ...

Capital Solutions

Asset-Intensive Solutions

Acquisitions

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Let's Connect

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Gaston Nossiter
Gaston Nossiter

Senior Vice President
Global Financial Solutions, Asia Pacific

Our Team is Here
to Help

Ë¿¹ÏÊÓƵAPP is a pioneer in creating innovative and highly tailored solutions to support longevity, asset-intensive longevity (see Asset-Intensive Solutions), and tail-risk transactions (see Capital Solutions).

To learn more, please speak to one of our experts.

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