Canada Life Reinsurance has entered into a long-term reinsurance agreement to cover the longevity risk on £1.7 billion of liabilities for pension members of the Marsh & McLennan Companies (MMC) UK Pension Fund.
The agreement, which covers 7,500 pension members, was written by the Barbados Brand of Canada Life through a reinsurance agreement with a Guernsey-based incorporated cell company, managed by Marsh Guernsey.
Tom O'Sullivan, general manager of the Barbados branch of Canada Life, said: "I am pleased to announce this major reinsurance agreement, which reflects our ability to collaborate effectively with the MMC UK Pension Fund to create a solution to efficiently hedge their longevity risk."
Jeff Poulin, global head of Canada Life Reinsurance, added: "This transaction highlights our expertise in underwriting large, complex and innovative risk transfer initiatives together with the value of our financial strength."
