We have a proven track record of advising on risk transfer arrangements, covering the full range of structures including conventional reinsurance and deposit backs as well as more recently developed techniques involving transfers of insurance risk into the capital markets. We advised on one of the first longevity swaps to be concluded in the UK market.
Increasingly, we are seeing risk transfer transactions involving a combination of insurance and non-insurance counterparties and "transformer" structures involving both reinsurance and capital markets solutions. As a firm we are well placed to advise on these types of technically complex transactions.
A particularly active area for risk transfer in recent years has been the offloading of risk associated with books of annuity business and we have advised on a number of these transactions. We have also been involved in advising on innovative transactions involving pensions de-risking as well as various other pensions solutions.
Our key experience includes advising:
AEGON on (i) a EUR 12 billion longevity swap with Deutsche Bank and (ii) a second innovative longevity transaction to reduce its risk from future improvements in longevity in the Netherlands.
Aviva on a transaction with PartnerRe and RBS under which Aviva transferred the longevity risk on a £475 million book of business until 2018. An innovative transaction structure was used under which the risk was ultimately placed with a range of capital markets investors.
Aviva on the reinsurance to Swiss Re of part of its book of UK life and pensions policies, administration of which had been outsourced to Swiss Re earlier in 2007.
Delta Lloyd Levensverzekering on a longevity swap transaction with Reinsurance Group of America (RGA) to mitigate longevity risk related to its Dutch life insurance portfolio. The transaction related to underlying longevity reserves of approximately EUR12 billion.
Legal & General on the £50 billion restructuring of the reinsurance arrangements between two of its operating subsidiaries in preparation for Solvency II, including for matching adjustment purposes.
Legal & General on the bespoke risk transfer arrangements forming the initial part of the sale of its Mature Savings (including with-profts) business to ReAssure relating to £34bn of underling liabilities, to be followed by a subsequent Part VII transfer of the business.
RSA on its disposal of £834 million of UK legacy liabilities to Enstar, which took the form of a Solvency II compliant collateralised reinsurance arrangements followed by a subsequent Part VII transfer of the business.
Standard Life Assurance on the reinsurance of £6.7 billion of UK immediate annuity liabilities to Canada Life International Re, in what is believed to have been the largest transaction of its kind in the UK at the time.
Standard Life and Aviva on intra-group reinsurance agreements entered into in connection with their Brexit-driven insurance business transfers.
Zurich on the reinsurance of its $2 billion pre-2007 UK legacy employers’ liability portfolio with Catalina, to be followed by an insurance business transfer of the portfolio.