Report: Buy-outs, buy-ins and longevity hedging

Summarising the activity in the buy-in, buy-out and longevity hedging markets during the second half of 2017, this report from Hymans Robertson offers its views on the market’s outlook.

Buy-outs, buy-ins and longevity hedging 1

Key findings:

  • The total value of buy-out and buy-in deals struck in H2 2017 was around £7.1 billion.
  • There were two longevity swaps in H2 2017 covering £5 billion of liabilities.
  • Competition, particularly amongst reinsurers, is leading to some attractive pricing for removing longevity risk and this is a key driver for the recent level of longevity swap activity.
  • Competitive pricing remains as a result of the continued strong appetite from global reinsurance companies to take on UK life expectancy risk.

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Supplied by REBA Associate Member, Hymans Robertson

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