November 2024
29Nov

US PRT Market sees $14B in Volume in Q3

Following a record-breaking first half of 2024 for the U.S. pension risk transfer market, which closed at $26 billion through June 30, the third quarter also finished strong, according to Legal & General Retirement America’s November market update. The third quarter closed at an estimated $14 billion in total premium—a 35% increase from the third quarter of last year, which landed at $10.6 billion. A huge chunk of that total came from one deal: IBM’s $6 billion PRT with Prudential Insurance Co. of America in September...

November 29, 2024
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27Nov

Kodak looks to terminate US pensions, will gain over $500 million in finances

According to a filing with the SEC, Kodak said that it looks to cut its pension plan. The plan has increased significantly due to initial contributions and market performance. The SEC filing stated that Kodak looks to use the cash from the cut and sale of the plan, which would to offset its debt. The sale — which also includes the sale of “illiquid assets” — was to Mastercard Foundation, and Kodak would retrieve more than $500 million. Kodak confirmed with...

November 27, 2024
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25Nov

UK. Aviva completes a £1.7 billion buy-in with the National Grid Electricity Group of the Electricity Supply Pension Scheme

Aviva has today announced the completion of a £1.7 billion pensioner buy-in with the National Grid Electricity Group (“the Group”) of the Electricity Supply Pension Scheme (“the Scheme”). The transaction, which completed in October 2024, included transitioning the Group’s existing longevity swap with Zurich Assurance Ltd to Aviva, and insures the benefits for 5,800 pensioner members of the Group. Aon acted as the sole transaction adviser, covering actuarial, investment and broking aspects. Legal advice to the Group Trustee was provided by...

November 25, 2024
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08Nov

Canadian pension risk transfer sales decrease to $2.1BN in Q3 2024: report

The market volume of annuity purchases by Canadian defined benefit pension plan sponsors reached an estimated $2.1 billion in the third quarter of 2024, a small decline from $2.5 billion in the previous quarter, according to a new report by Telus Health. It noted some insurers are showing a show a strong appetite and offer competitive pricing on a broad spectrum of deals, while others that are nearing their capacity limits are adopting a more selective approach in allocating their...

November 8, 2024
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October 2024
23Oct

New pension longevity model launched by Oliver Wyman and Mercer

Oliver Wyman and Mercer, businesses of Marsh McLennan, has launched a new pension risk transfer (PRT) longevity model that will enable pension plan sponsors, direct insurers and reinsurers to better price and manage longevity risk. Drawing on Mercer’s US longevity dataset of over one million pension lives, the model leverages the combined actuarial strength and longevity expertise of Oliver Wyman and Mercer. It also incorporates socioeconomic and demographic factors to generate a granular view of longevity risk. The underlying technology of the...

October 23, 2024
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10Oct

US. Over 90% of corporations with derisking goals to shed pension liabilities — MetLife

More than 90% of U.S. corporations with defined benefit plans that have derisking goals plan to transfer all their liabilities in an average of just under four years, according to a new poll conducted by MetLife. In the insurer’s 2024 Pension Risk Transfer Poll, 93% of respondents said they intend to completely offload all of their pension liabilities, up from 89% that expressed that sentiment a year ago. Among that population, they plan to do so in an average of 3.8...

October 10, 2024
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08Oct

Regulators increase scrutiny on funded reinsurance amid pension de-risking surge

The growing use of innovative “funded” or “asset-intensive” reinsurance structures by life insurance companies has attracted regulatory attention, particularly in light of the expanding pension de-risking market. These transactions, which involve transferring corporate pension scheme liabilities to life insurers, have led to an increase in reinsurance activity where both investment and longevity risks are passed to reinsurers. In its latest report, Hogan Lovells notes that while regulators recognize the strategic role of reinsurance in managing risk and capital, the rising volume of...

October 8, 2024
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September 2024
13Sep

Pension Risk Transfer Monitor

By Legal & General  In this latest edition of our Pension Risk Transfer (PRT) Monitor, we off¬er a side-by-side analysis of the two largest PRT markets globally – the US and UK. We expect PRT volumes to remain elevated across the next decade. Based on current levels, more than £250 billion of combined UK and US volumes are likely to be secured by insurers in the next 3 years alone. In this bulletin we reflect on the first half of...

September 13, 2024
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12Sep

IBM completes $6 billion pension buyout with Prudential, its second in 2 years

International Business Machines Corp., Armonk, N.Y., purchased a group annuity contract from Prudential Insurance Co. of America to transfer $6 billion in defined benefit plan liabilities. The purchase of the contract, which closed Sept. 11, transfers the benefit-paying responsibility for about 32,000 retirees and beneficiaries covered by the IBM Personal Pension Plan, according to an 8-K filing with the SEC. According to the filing, the transferred participants represent “certain pension benefits that began to be paid prior to 2016.” Prudential will take on the...

September 12, 2024
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06Sep

UK and US pension risk transfer market to exceed £250bn in next three years

Legal & General has today released the latest edition of its Pension Risk Transfer (PRT) Monitor, which analyses industry trends and market outlooks in the UK and US. Findings from the report show: The UK PRT market has completed an estimated £20bn of buy-ins and buyouts in the year to date The US market experienced a record breaking first half, estimated at $26bn Both markets are on track for one of their largest years ever, with a significant increase in the number...

September 6, 2024
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