Pension Insurance Corporation has reinsured £300 million of its longevity risk through global reinsurer Munich Re.
Following a £500 million reinsurance arrangement with other reinsurers in 2011, Pension Insurance Corporation, a defined benefit (DB) schemes risk management provider, has now reinsured 65% of its longevity exposure.
The firm buys out DB schemes and provides insurance to protect against the possible risk of members living longer than expected.
Rob Sewell, chief financial officer at Pension Insurance Corporation, said: “It is vital that we maintain our focus on securing our existing policyholders’ pensions for the long-term and this reinsurance transaction helps to further protect us against the very long-dated risks we face.”
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