Tue, 11th Dec 2018 09:00
PIC REINSURES £1.2 BILLION OF
LONGEVITY RISK WITH SCOR
London, 11 December 2018 - Pension Insurance Corporation plc ("PIC"), a specialist insurer of defined benefit pension funds, has concluded a £1.2 billion longevity reinsurance deal with SCOR. The agreement covers the longevity risk for around 8,000 in-payment lives and, where applicable, their spouses, across six separate defined benefit pension schemes. This agreement builds upon a similar £1 billion contract executed in 2017.
PIC's longevity reinsurance business volumes for 2018 currently exceed £4 billion and are expected to exceed a record £5 billion by the end of the year. The company has reinsured over 70% of its total longevity exposure and has now signed treaties with eleven highly rated reinsurance counterparties. Longevity reinsurance is an intrinsic part of PIC's business model. PIC wrote its first longevity reinsurance contract in 2008.
Rupen Shah, Global Head of Longevity at SCOR, said: "We are extremely pleased to have supported PIC in their continued efforts to help improve the security of retirees' pensions. It was a pleasure working with the PIC team and we are particularly happy that the investment put in by both teams during our first transaction last year paid dividends in helping to complete this deal in such an effective and timely manner."
Khurram Khan, Head of Longevity Risk at PIC, said: "We are delighted to have signed this second agreement with SCOR - characterised by both parties working in a highly efficient and collaborative manner. As UK bulk annuity market volumes continue to increase, reinsurance transactions need to become smoother and offer wider coverage. It is pleasing to see our reinsurance partners responding to these changing demands."
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Notes to Editors:
For further information please contact:
Pension Insurance Corporation Jeremy Apfel +44 (0)20 7105 2140
Teneo Blue Rubicon Anthony Silverman +44 (0)20 3757 9231
About Pension Insurance Corporation The purpose of Pension Insurance Corporation plc ("PIC") is to pay the pensions of its policyholders. PIC provides secure and stable retirement incomes through leading customer service, comprehensive risk management and excellence in asset and liability management. At half-year 2018, PIC had insured 162,800 pension scheme members and had £27.9 billion in financial investments, accumulated through the provision of tailored pension insurance buyouts and buy-ins to the trustees and sponsors of U.K. defined benefit pension schemes. Clients include FTSE 100 companies, multinationals and the public sector. PIC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (FRN 454345). For further information please visit www.pensioncorporation.com
SCOR, a Global Tier 1 Reinsurer
With total premiums of EUR 14.8 billion and assets of EUR 43.2 billion in 2017, SCOR is one of the world's largest reinsurance companies. SCOR provides insurance companies with a diversified and innovative range of solutions and services to control and manage risk. Using its experience and expertise ("The Art & Science of Risk"), SCOR provides cutting-edge financial solutions, analytics tools and services in all areas related to risk - in Life & Health insurance (longevity, mortality, LTC, etc.) as well as in P&C insurance (natural catastrophes, agriculture, industry, transport, engineering, etc.). The Group's 2,800 employees serve clients in more than 160 countries from its 38 offices worldwide.
For more information, visit: www.scor.com