Pica and PIC agree longevity reinsurance deal
The Prudential Insurance Company of America (Pica) has completed its first longevity reinsurance transaction with UK-based insurer Pension Insurance Corporation, a specialist insurer of defined benefit pension funds.
Pica is to provide reinsurance to Pension Insurance Corporation for longevity risk associated with pension liabilities for more than 6,700 pensioners.
“This transaction represents another milestone in our efforts to expand our strategic partnerships with UK insurers, like PIC, to bring secure retirement to UK pensioners,” said William McCloskey, vice president, longevity reinsurance at Prudential.Pica have recently carried out reinsurance transactions in the UK with 2014’s British Telecom Pension Scheme (BTPS), among others.
“This collaboration represents a further channel for the flow of PIC’s longevity risk to the reinsurance sector,” Khurram Khan, head of longevity risk management at PIC, said.
“We’re pleased to begin this new partnership, which brings increased efficiency and capacity to PIC’s reinsurance capability. This means we can offer better solutions to our customers.”
Prudential has completed the largest known pension risk transfer transactions in North America, including General Motors, Verizon, Motorola, Bristol-Myers Squibb and most recently, a transaction with Kimberly-Clark Corporation in the US, and the largest offshore longevity risk transaction with BTPS located in the UK.
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