22 Aug 2018
Legal & General enters longevity insurance market for smaller schemes and completes c.£300m longevity insurance contract
The transaction marks Legal & General’s entry into the longevity insurance market for these relatively smaller schemes. To date, competition for longevity insurance contracts has been limited for smaller schemes, with the majority typically transacted in conjunction with much larger schemes.
This innovative transaction has allowed the scheme to use insurance to remove the risk to the scheme’s liabilities of its pensioner members living longer than expected, whilst still benefiting from any returns that it receives on the assets it retains.
Chris DeMarco, Managing Director UK Pension Risk Transfer