Pension Insurance Corporation (PIC) has off-loaded hundreds of millions of pounds of longevity risk after writing £3.7bn of new business in 2017.
The £725m reinsurance agreement with PartnerRe covers its buy-in of the Former Registered Dock Workers Pension Fund in November.
PIC closed £4bn worth of such insurance deals in 2017 and this latest deal means that it now has 10 reinsurance counter-parties.
PIC head of longevity risk Khurram Khan said he hopes this agreement will serve as a useful platform for future business with PartnerRe.
“This deal covers a group of lives whose demographic profile made this a challenging portfolio to price,” he added.
PartnerRe head of longevity and portfolio reinsurance Kevin O’Regan said the deal will help PIC manage its capital more efficiently.
“As their reinsurance partner, 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,” he added.
