Prudential Retirement completes fifth reinsurance transaction with Rothesay Life
Second transaction in recent months; covers longevity risk for 25,000 annuitants
Prudential Retirement, a business unit of Prudential Financial Inc. (NYSE:PRU), announced today its fifth longevity reinsurance transaction since 2011 with Rothesay Life Limited and its affiliates. Under the terms of this new transaction, Prudential will provide reinsurance of longevity risk to Rothesay Life Limited for a block of eight pension schemes. The transaction covers longevity risk associated with pension liabilities of $450 million (approximately equal to 288 million Pounds Sterling) for approximately 25,000 pensioners and deferred members in the U.K.
“Today’s transaction is another example of Rothesay’s leadership in the thriving U.K. market,” said Amy Kessler, senior vice president and head of longevity reinsurance at Prudential. “The strong partnership between Rothesay and Prudential supports the growing pension de-risking trend in the United Kingdom and ensures that there is capacity for pension schemes seeking to de-risk.”
This is the second longevity reinsurance transaction that Prudential has announced with Rothesay Life in recent months. In August, Prudential announced a $1.7 billion (approximately equal to 1 billion Pounds Sterling) transaction covering 20,000 annuitants. These transactions follow Prudential’s groundbreaking agreement in July to reinsure $27.7 billion of longevity risk associated with BT Pension Scheme liabilities.
“We are pleased that Rothesay continues to choose and trust us to help secure the retirement benefits for thousands of pensioners,” said David Lang, Director, Pension Risk Transfer Actuary for Prudential Retirement.
Tom Pearce, managing director, Rothesay Life, added “This latest transaction is a further example of Rothesay Life’s commitment to its pensioners. We’re delighted to build upon our partnership with Prudential as we continue to focus on delivering a secure retirement for our annuitants.”
About Rothesay Life
Rothesay Life was established in 2007 and has become one of the leading providers of regulated insurance solutions in the UK market for pensions de-risking, with over £15 billion of insurance contracts. In 2013, Rothesay Life wrote £1.6 billion of new bulk annuity business following the £1.3 billion written in 2012. This strong growth has been achieved through the steady accumulation of pension scheme clients.
Existing Rothesay Life clients include the pension schemes and members associated with such names as RSA, British Airways, Rank, Uniq, General Motors, the MNOPF (Merchant Navy Officers Pension Fund), InterContinental Hotels, Philips and GKN.
Rothesay Life is a secure long-term provider of pensions, focused on:
- a flexible and committed approach to execution;
- ongoing risk management to maintain balance sheet strength; and
- robust operational processes.
Rothesay Life is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. For more information, visit www.rothesaylife.co.uk.
Reinsurance contracts are issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT 06103. PRIAC is not a U.K. authorized insurer and does not conduct business in the United Kingdom or provide direct insurance to any individual or entity therein. Prudential Financial, Inc. of the United States is not affiliated with Prudential plc, which is headquartered in the United Kingdom.
Prudential Retirement delivers retirement plan solutions for public, private, and nonprofit organizations. Services include defined contribution, defined benefit and non-qualified deferred compensation record keeping, administrative services, investment management, comprehensive employee education and communications, and trustee services, as well as a variety of products and strategies, including institutional investment and income products, pension risk transfer solutions and structured settlement services. With over 85 years of retirement experience, Prudential Retirement helps meet the needs of 4.0 million participants and annuitants. Prudential Retirement has $356.1 billion in retirement account values as of September 30, 2014. Retirement products and services are provided by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT, or its affiliates.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with more than $1 trillion of assets under management as of September 30, 2014, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit www.news.prudential.com.
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