- Prudential (NYSE:PRU +1.2%) Retirement's International Reinsurance business closes its first reinsurance transaction involving an unnamed U.K. pension plan using an independent U.K.-regulated insurer, Zurich Assurance Ltd., as intermediary.
- The transaction, which closed in March, transfers longevity risk associated with £6B ($8.4B) of pensioner liabilities, is Prudential's third-largest U.K. longevity risk transfer to date.
- The deal uses a limited recourse or pass-through structure, meaning the longevity and default risks are able to be passed through the insurer.
- "All indications are that the U.K. pension risk transfer buy-in and buy-out market activity will remain strong this year," said Rohit Mathur, head of transactions for Prudential’s International Reinsurance business.