Swiss Re partners with NTUC Income on a first-in-market longevity arrangement to shield against future variation in Income’s annuity book

Swiss Re has partnered with composite insurer, NTUC Income (Income) on the first longevity arrangement of its kind in Singapore. This partnership will help shield Income from future variations in its annuity book, by sharing with Swiss Re any future payments to annuitants who live beyond their age expectancy.

The long-term nature of annuity business can lead to high capital requirements under various solvency regimes. This partnership enables Income to improve its own capital efficiency and further strengthen its solvency position.

Many Asian markets are witnessing a rapidly ageing society. Coupled with longer lives, fluctuating interest rates and the increased need to plan for one’s retirement, consumers are keen to gain better financial security in their golden years. The insurance sector is well-placed to help empower customers to achieve better financial wellbeing by providing relevant savings and retirement solutions.  

“It’s important the re/insurance industry works with governments and society to plan and mitigate the risks of an ageing population. In this instance, Swiss Re leveraged its global longevity reinsurance expertise, deal-making track record and local market knowledge to tailor a solution that helps de-risk Income’s legacy annuity book,” said Mr. Russell Higginbotham, Swiss Re’s CEO Reinsurance Asia and Regional President Asia.

“We welcome the opportunity to work with our insurance partners and to offer them confidence to pursue their own solutions that support an ageing society. We expect to partner with more clients in Asia to achieve similar positive outcomes. This is part of our mission to close the protection gap here in the region and around the world.”

Ms. Lau Sok Hoon, Income’s Chief Actuary, said, “As Singaporeans live longer lives, Income places a strong focus in ensuring seniors’ access to insurance. We are glad to have found a like-minded partner in Swiss Re who also appreciates the importance of empowering older Singaporeans to be more financially ready in the years ahead. Only with better financial wellbeing may we empower our seniors to age successfully and take charge of that narrative.”

About Swiss Re

The Swiss Re Group is one of the world’s leading providers of reinsurance, insurance and other forms of insurance-based risk transfer, working to make the world more resilient. It anticipates and manages risk – from natural catastrophes to climate change, from ageing populations to cyber crime. The aim of the Swiss Re Group is to enable society to thrive and progress, creating new opportunities and solutions for its clients. Headquartered in Zurich, Switzerland, where it was founded in 1863, the Swiss Re Group operates through a network of around 80 offices globally.

About NTUC Income

NTUC Income is Singapore’s leading composite insurer, offering products and services that serve the protection, savings and investment needs of different life stages and for all segments of society. Income’s innovative, data-driven and omni-channel approach puts us at the forefront of customer-centric solutions that meet rapidly evolving needs and empower better financial well-being. Income was established in 1970 and remains the only insurance co-operative in Singapore. We are committed to create a positive social impact through our products, services and people. Today, we insure close to 1.7 million lives in Singapore across life, health and general insurance. Our financial strength and diversified investment portfolio is reflected by our strong credit ratings which underpin the delivery of our commitment to customers.