Following up on the weekend's "The Richer You Are the Older You’ll Get".
From Artemis:
Aon Hewitt, the retirement, talent and health solutions business of insurance and reinsurance broker Aon plc, noted today that the UK longevity swaps market has reached £50 billion of deals and should hit £70 billion by the end of 2015.And there's another one: "ScottishPower in £2 billion longevity swap with Abbey Life"
2015 is likely to see an increased number of pension schemes seeking to access sources of longevity insurance and reinsurance capacity, Aon Hewitt said, and the significant amount of reinsurance capacity available for longevity risks, along with streamlined deal structures and timelines should ensure further growth.
Aon Hewitt records the start of the UK longevity swaps market as being mid-2009 (we have them all listed in our longevity swaps and risk transfer deal directory, with £50 billion of deals completed since that time. The £50 billion of longevity swaps is dominated by a number of very large deals, the biggest being the £16 billion BT Pension Scheme longevity swap, but the market is responding with structures and terms designed to make it cheaper and easier for smaller schemes to access.
Martin Bird, senior partner and head of risk settlement at Aon Hewitt, commented; “The longevity swap market may well be perceived as having been rather stop-start. But today, with over £50billion of risk successfully transferred to the reinsurance market, the outlook is very different. The reinsurance market remains buoyant and is keen to capitalise on the investments made in terms of building capability and resource, in order to price, structure and execute deals. We see no shortage of capacity and can already see a deal flow of more than £20 billion during 2015....MORE
