Metropolitan Tower Life Insurance Company, a MetLife subsidiary, announced today that it has completed a significant longevity reinsurance transaction involving an unnamed U.K. pension scheme, with Zurich acting as an intermediary.
MetLife’s first longevity swap of U.K. pension scheme liabilities was completed in the fourth quarter of 2021. Aon served as the transaction’s primary adviser. Metropolitan Tower Life Insurance Company will provide reinsurance for longevity risk associated with approximately £2.58bn in pension liabilities under the terms of the agreement.
MetLife’s retirement & income solutions business senior vice president and head of risk solutions Jay Wang says: “We are pleased MetLife has been selected to reinsure these obligations. As MetLife’s first pension scheme longevity swap transaction, this marks an important milestone in the evolution of our U.K. longevity reinsurance business and highlights MetLife’s focus on innovation to meet the customers’ needs,” said“We are also delighted to have been able to build our relationships with Aon and Zurich in this market and are eager to continue the partnership to support pension scheme de-risking in a time of increased uncertainty.”
Aon’s Risk Settlement Group associate partner Tom Scott says: “MetLife’s entry into the reinsurance market supporting U.K. longevity swaps is fantastic news for pension schemes. MetLife adds substantial capacity and appetite to an already very busy sector. With continued high demand from pension schemes for longevity de-risking solutions, this is very welcome and we look forward to another busy year in 2022.”
Zurich head of longevity risk transfer Greg Wenzerul says: “We are delighted to have worked with MetLife on this latest deal. MetLife’s entry to this market, and the specific features of this transaction, are positive for this market as a whole.”