SCOR completes £1.7bn longevity reinsurance transaction with Balfour Beatty Pension Fund

Written by Adam Cadle

31/11/2022

SCOR has completed a £1.7bn longevity reinsurance transaction covering the pensions of over 15,000 members of the defined benefit section of the Balfour Beatty Pension Fund.

The longevity swap with Balfour Beatty Pension Fund follows the £5.5bn longevity swap transaction with Lloyds Bank No. 1 Pension Scheme announced in March earlier this year.

Under the terms of the latest deal, SCOR will take on 100% of the longevity risk of the pensioners covered. Zurich UK will act as an intermediary insurer, adopting a “pass-through” structure that facilitates the risk transfer to SCOR as the reinsurer. SCOR was selected as the trustee’s preferred partner following a competitive tender from the entire longevity provider market, which was led by the trustee’s advisers Aon and CMS. SCOR was advised by global law firm Eversheds Sutherland.

Frieder Knüpling, SCOR, CEO Life & Health, said: “This transaction underlines SCOR’s strong appetite to deliver longevity solutions to our clients. Recent world events have brought life and health risks into sharp focus and now, more than ever, we are seeing demand for stability. We are pleased to be supporting the Balfour Beatty pension trustees in bringing additional security to their pension scheme members.”

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