PartnerRe has entered into a £725 million longevity reinsurance deal with Pension Insurance Corporation (PIC), a UK specialist insurer of defined benefit pension funds.
The deal covers the longevity risk acquired by PIC when they insured the Dockworkers Pension Fund in a full buy-in in November 2017.
The agreement, which is the first transaction between PIC and the Bermuda-based reinsurer, follows a full market tender process.
Head of longevity and portfolio reinsurance at PartnerRe Kevin O’Regan commented: “We hope that the confidence and reassurance of having well-structured reinsurance in place will enable PIC to continue their vital service to pension scheme members, and we look forward to supporting Khurram Khan and the PIC team on future transactions.”
Khurram Khan, head of longevity risk at PIC, said: “This deal covers a group of lives whose demographic profile made this a challenging portfolio to price.”
“We enjoyed working with PartnerRe. Their focused and nimble approach was central to enabling a rapid completion.”
