L&G enters longevity market
Legal & General (L&G) has entered the longevity insurance market.
According to the group, life expectancy at age 65 in England and Wales has increased by around one to 2.5 years each decade in the last three, for both males and females.
Pension schemes are therefore exposed to the risk that their life expectancy assumptions are wrong and the specialist cover will enable defined benefit schemes to hedge exposure to longevity risk, while keeping control of investment strategy.
L&G’s managing director for annuities, Simon Gadd, comments: “Pension schemes have seen increases in future life expectancy continue to increase their liabilities.”
He adds: “So, the ability to insure against any further increases is an attractive proposition for scheme trustees and sponsors as they seek to manage this risk within their schemes.”
Separately, L&G is predicting that UK risk and savings markets will rebound 2010.
Chief executive, Tim Breedon, explains: “Legal & General’s strategy of increasing efficiency and concentrating new business activity in the markets we consider to be most attractive in terms of growth potential and return on capital is delivering.”
Category: Business Insurance News, Companies News, Insurance News
Visited 2030 times, 2 so far today
Comments (0)
Trackback URL | Comments RSS Feed
There are no comments yet. Why not be the first to speak your mind.