September 2021
22Sep

US. Milliman: Pension risk transfer premiums fall for second straight month

Pension risk transfer premiums fell slightly for the second month in a row in August, a study by Milliman showed. According to a report of the Milliman Pension Buyout index, the estimated buyout cost as a percentage of accounting liabilities (accumulated benefit obligation) was 102.2% as of Aug. 31, down from 102.3% as of July 31. That month's premium was down from 102.4% as of June 30. Meanwhile, the average annuity purchase rates among the most competitive rates remained steady in...

September 22, 2021
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17Sep

Aviva : announces £320m bulk annuity deal with the John Laing Pension Fund

Aviva today announces it has completed a £320m bulk purchase annuity transaction with the John Laing Pension Fund. John Laing is an active investor and manager of infrastructure projects, focused on major transport, social and environmental infrastructure projects and renewable energy projects, across a range of international markets including the UK. This is the second buy-in transaction between Aviva and the John Laing Pension Fund. It follows a £211 million transaction in December 2008. Aviva will insure the defined benefit...

September 17, 2021
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02Sep

Can Insurers Be a Pension Safety Net?

Pensions are complicated enough without employers passing the buck onto someone else, but increasingly, that is what's happening. In exchange for buying a group annuity, employers are transferring their pension-paying obligations to life insurance companies, who pay the pension. The practice, known as pension risk transfer or de-risking, has implications for how pensions are protected and whether the payments are off limits to creditors. About 33 million Americans still participate in private pension plans, according to the federal Pension...

September 2, 2021
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August 2021
27Aug

Global Pension Risk Survey 2019

By AON Welcome to the findings of Aon’s 2019 Global Retirement Risk Survey for the Asia-Pacific region. Aon’s Global Retirement Risk Survey has been conducted every two years for over a decade. The survey is part of a global series of surveys that follows defined benefit (DB) plan sponsors’ risk management attitudes and practices around the world. This is the first time that the survey has been conducted in the wider Asia-Pacific region. Japan took part in the research in...

August 27, 2021
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20Aug

Here’s The Only Retirement Risk That Really Matters To You

Chances are at some point in your retirement saving (or spending) life you’ve been asked a question or two about your appetite for risk. For a while, back in the era of Modern Portfolio Theory, the whole concept of “risk” and the investor was the cat’s pajamas. In the old days they even had entire questionnaires designed to extract this information from you without you knowing it. That is until it became clear those little quizzes had about as much...

August 20, 2021
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17Aug

UK. 4 million under-40s missing out on pension investment returns due to low risk appetite

Around four million workers under 40 could be losing out on investment returns as they are in low-risk pensions that do not have potential for higher growth, according to research from Interactive Investor (II). The research, undertaken by Opinium, revealed that 66 per cent of people aged between 18 and 39, equal to around 10 million people, have a low-risk (25 per cent) or medium-risk (41 per cent) pension, whilst 19 per cent have a high-risk pension. Furthermore, over half (54...

August 17, 2021
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04Aug

US. Lockheed Martin offloads $4.9 billion in pension liabilities

Lockheed Martin Corp., Bethesda, Md., purchased group annuity contracts from Athene Holding Ltd. to transfer about $4.9 billion in U.S. pension plan liabilities. The purchase completed Tuesday will transfer the benefit-paying responsibilities for about 18,000 U.S. retirees and beneficiaries to Athene's wholly owned subsidiaries Athene Annuity and Life Co. and Athene Annuity & Life Assurance Company of New York, a news release from the aerospace and defense company said Tuesday. The Athene subsidiaries will begin paying benefits to the retirees and...

August 4, 2021
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03Aug

Europe’s Pension Funds Still Don’t Know How to Treat a Key Risk

The main organization representing European pension funds says it’s still not clear how the industry should balance financial returns against a desire to do more environmental and social investing. The lack of clarity means pension investors representing about $5 trillion may be putting less cash than they otherwise might into sustainable assets. That’s as the need for a decisive reallocation of capital toward planet-saving goals grows more urgent as global warming becomes increasingly deadly. How asset managers treat ESG risk will...

August 3, 2021
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July 2021
28Jul

UK. Consultation risks taking DC pension consolidation ‘too far, too fast’

The Department for Work and Pensions’ (DWP) most recent consultation on further consolidation in the defined contribution (DC) pension market risks taking consolidation “too far, too fast”, according to Hymans Robertson. In its response to the consultation Future of the DC pension market: the case for greater consolidation, Hymans Robertson warned that taking consolidation further and faster would be “counter-productive”, and reduce competition and innovation. “Since DC took over from defined benefit (DB) as the main source of pension provision in...

July 28, 2021
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23Jul

Alternative Risk Transfer: Integrated Risk Management through Insurance, Reinsurance, and the Capital Markets

By Erik Banks A practical approach to ART-an alternative method by which companies take on various types of risk This comprehensive book shows readers what ART is, how it can be used to mitigate risk, and how certain instruments/structures associated with ART should be implemented. Through numerous examples and case studies, readers will learn what actually works and what doesn't when using this technique. Erik Banks (CT) joined XL Capital's weather/energy risk management subsidiary, Element Re, as a Partner and Chief Risk...

July 23, 2021
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