Report: Buy-outs, buy-ins and longevity hedging
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.
Supplied by REBA Associate Member, Hymans Robertson
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