MetLife enters UK longevity reinsurance market

Written by Adam Cadle

19/06/2020

Metropolitan Tower Life Insurance Company, a subsidiary of MetLife, has completed its first UK longevity reinsurance transaction with PIC.

Under the terms of agreement, Metropolitan Tower Life Insurance Company will provide reinsurance to PIC for longevity risk associated with approximately £280m of pension liabilities.

“This transaction marks an important milestone in MetLife’s strategy and gives us the opportunity to apply our experience managing risk to a new market,” said Graham Cox, executive vice president and head of retirement & income solutions at MetLife.

“With this transaction, MetLife is establishing itself as a reinsurance solution for direct insurers in the UK. While this is MetLife’s initial step into the UK longevity reinsurance market, our long history and mortality expertise position us well for the future.

"In 2019, there were more than £40bn of UK pension risk transfer transactions completed — this robust market presents an opportunity for reinsurers to support direct insurers by managing their longevity risk,” Cox said. “We are pleased to be working with PIC and look forward to building on this relationship.”

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