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Daily Insurance Industry News
Sunday 25th of February 2018
February 22, 2010

Abbey Life secures BMW pension longevity insurance

by Gill Montia

Story link: Abbey Life secures BMW pension longevity insurance

Abbey Life has announced that it has secured the “largest ever” longevity insurance transaction.

The Deutsche Bank-owned firm will provide the BMW (UK) Operations Pension Scheme with a hedge for life expectancy risks associated with nearly £3 billion of pension scheme liabilities relating to around 60,000 pensioners.

The deal involved Abbey Life making use of longevity modelling techniques and expertise provided by Paternoster, the pensions’ insurer in which Deutsche Bank is the largest shareholder.

A proportion of the risk will be spread to a consortium of reinsurers (including Hannover Re, Pacific Life Re and Partner Re).

Abbey Life’s chief risk officer, Rashid Zuberi, comments: “We are extremely proud of the hedge we designed … through the utilisation of innovative structuring and reinsurance capacity we have been able to manage the overall risk of the transaction to deliver a cost effective way for the scheme to mitigate a large and complex risk.”

The firm’s chief executive officer, Nardeep Sangha, adds: “In bringing this leading solution to BMW and its UK pension scheme, we have demonstrated our ability to combine our balance sheet strength and internal expertise with the specialist pensions and longevity know-how at Paternoster to bring about a landmark transaction.”

According to Mr Sangha, Abbey Life is committed to providing innovative solutions to UK pension schemes as the market grows.

 

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