Pension Insurance Corporation (PIC) has agreed a £1 billion longevity reinsurance deal with SCOR, a multi-line company.
The agreement covers the longevity risk for approximately 7,000 in-payment lives and, where applicable, their spouses, across size-defined benefit pension schemes that completed buy-in transactions with PIC over the past year.
After the latest deal with SCOR, PIC now has eight longevity swap reinsurance counterparties.
Khurram Khan, head of longevity risk at PIC, said: “A full market tender process was run with SCOR being the successful reinsurer. PIC is now protected against unexpected longevity increases for another 7,000 lives and can release regulatory capital as a direct result.”
Khan added: “We have also acquired a new reinsurance partner thereby helping to widen our counterparty relationships under these very long-term contracts.”
