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Barclays Bank UK Retirement Fund, Redhill, England, has insured £7 billion ($8.6 billion) in liabilities through a longevity swap with PFI, the insurance subsidiary of Prudential Financial, according to a news release on Thursday.
This is the second longevity swap for the fund, following one with Reinsurance Group of America in December 2020 for £5 billion. At the time, the scheme’s defined benefit assets were £34 billion.
The fund has now covered three-fourths of its longevity risk with swaps, the release said. Plan trustee chairman Peter Goshawk said in the release that the latest longevity transaction “is an important part of UKRF’s continued de-risking and improves benefit protection for all members.”
Aon was UKRF’s lead adviser on the transaction and Allen & Overy provided legal counsel, while Wilkie Farr & Gallagher served as PFI’s legal counsel. Tom Scott, partner in Aon’s risk settlement team, said in a separate statement that the transaction team “leveraged the increased capacity and appetite of the global reinsurance market during the broking process.”
As of September 30, PFIs had more than $1.3 trillion in assets under management, according to a UKRF release.
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