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Transfer volumes could hit £600bn as insurers post strong results
Transfer volumes could hit £600bn as insurers post strong results
A host of insurers have revealed their first-half 2022 results that show a booming trade in risk transfers, which, by some projections, could hit £600bn over the next decade — though there are fears about a capacity crunch in the sector. Of those that have released their results so far, Aviva saw bulk annuity sales increase by 15 per cent, rising to £1.9bn, which compares with £1.6bn in H1 2021. Standard Life’s new business long-term cash generation comprised £282mn from its bulk annuities business, significantly up from the £80mn across the same period last year. Legal & General, meanwhile, saw its profit underpinned by the performance of its annuity portfolio and the strong global pension risk transfer market, leading to new business volumes of £4.4bn — up from £3.1bn in H1 2021, with the £3.7bn in pension risk transfers exceeding the £2bn registered in the same period last year. It said it expected to write £40bn to £50bn of new pension risk transfers in the next five years.
#ART#Longevity#Pensions
·pensions-expert.com·
Transfer volumes could hit £600bn as insurers post strong results
Pension risk transfer market set for second-biggest year
Pension risk transfer market set for second-biggest year
Pension risk transfer volumes in the UK are expected to conclude the year at their second-highest level, according to Legal & General. The forecast follows a bumper first half of 2022 for insurers. Aviva saw bulk annuity sales increase by 15 per cent, rising to £1.9bn, which compares with £1.6bn in the first-half of 2021. Standard Life’s new business long-term cash generation comprised £282mn from its bulk annuities business, markedly up from the £80mn across the same period last year. In the UK, L&G expects the volume of transfers for the first half of this year to be around £12bn, representing an approximate 50 per cent increase compared with the first half of 2021. The insurer anticipates the overall volume in 2022 to reach £30bn to £35bn, which would make it the second-largest year ever in the UK market. This volume could potentially exceed £35bn depending on the number of large transactions that complete this year, the insurer said.
#ART#Longevity#Pensions
·pensions-expert.com·
Pension risk transfer market set for second-biggest year
Carr’s Group Pension Scheme eyes full buyout
Carr’s Group Pension Scheme eyes full buyout
The £75.6 million Carr’s Group Pension Scheme may secure a full buyout after its sponsor announced an agreement to sell its interest in a subsidiary. In line with a strategic review announced in January to grow shareholder value, the agriculture and engineering company entered into a conditional agreement to dispose of its interest in Carr's Billington Agriculture, to Edward Billington and Son, for an aggregate consideration of up to £44.5 million.
#Longevity#Pensions#ART
·pensions-expert.com·
Carr’s Group Pension Scheme eyes full buyout
Kesslers Group scheme agrees £21mn full buy-in
Kesslers Group scheme agrees £21mn full buy-in
The Kesslers Group Pension Plan has agreed a £21 million full scheme buy-in with Legal & General. The deal, which was signed in June, secures the benefits of approximately 240 employees, including a mix of deferred and pensioner members.
#Longevity#Pensions#ART
·pensions-expert.com·
Kesslers Group scheme agrees £21mn full buy-in
Barloworld UK scheme secures £484mn full buy-in
Barloworld UK scheme secures £484mn full buy-in
The Barloworld UK Pension Scheme has agreed to a £484 million full scheme buy-in with Just Group. The insurer completed the full buy-in with the involvement of an undisclosed reinsurance partner, which became responsible for 50 per cent of the liabilities. The transaction covers the benefits of around 3,000 pensioners and 1,800 deferred members.
#ART#Longevity#Pensions
·pensions-expert.com·
Barloworld UK scheme secures £484mn full buy-in
Insurers publish first bulk annuity ‘best practice’ guide
Insurers publish first bulk annuity ‘best practice’ guide
UK insurers have collaborated to produce the industry’s first-ever “best practice” guide for schemes preparing for bulk annuity quotations, laying out principles by which trustees, advisers and administrators should abide. The guide was produced by all eight insurers currently operating in the bulk annuity market — Aviva, Canada Life, Just Group, Legal & General, Pension Insurance Corporation, Rothesay, Scottish Widows and Standard Life, with law firm DLA Piper. https://www.dlapiper.com/en/uk/insights/publications/2022/09/best-practice-guide-preparing-pension-schemes-for-a-bulk-annuity-quotation/
#Pensions#Longevity#ART
·pensions-expert.com·
Insurers publish first bulk annuity ‘best practice’ guide
IBM offloads $16 billion in pension liabilities with annuity purchases
IBM offloads $16 billion in pension liabilities with annuity purchases
IBM purchased group annuity contracts from Prudential Insurance and Metropolitan Life Insurance to transfer a total of $16 billion in U.S. defined benefit plan liabilities. They transfer the benefit-paying responsibility for about 100,000 retirees and beneficiaries covered by the IBM Personal Pension Plan. It is the second largest in U.S. history, after the 2012 General Motors $29 billion transfer to Prudential via a pension buyout transaction.
#ART#Longevity#Pensions#UnitedStates
·pionline.com·
IBM offloads $16 billion in pension liabilities with annuity purchases
First-half bulk annuity volumes surge 50% against 2021
First-half bulk annuity volumes surge 50% against 2021
The UK pensions risk transfer market is up 50% in the first half of 2022 compared with last year’s H1 figure, with £12 billion in buy-ins and buyouts making for the third-largest H1 figure on record, according to LCP. Aviva, Legal & General, Pension Insurance Corporation, Rothesay and Standard Life — all wrote more than £1 billion in the period. The largest single transaction was a £2.3 billion follow-on pensioner buy-in by the British Steel Pension Scheme with L&G.
#ART#Longevity#Pensions#UnitedKingdom
·pensions-expert.com·
First-half bulk annuity volumes surge 50% against 2021
Pactiv shipped off $660 million in pension liabilities in buyout deals
Pactiv shipped off $660 million in pension liabilities in buyout deals
Pactiv LLC purchased group annuity contracts from Athene Annuity and Life Company and Athene Annuity & Life Assurance Company of New York to transfer about $660 million in U.S. pension liabilities. They transfer the future benefit obligations and annuity administration for approximately 10,200 retirees and beneficiaries. The transfer reduced Pactiv's gross pension plan liabilities by approximately 40% of the plan's estimated projected benefit obligations.
#ART#Longevity#Pensions#UnitedStates
·insurancenewsnet.com·
Pactiv shipped off $660 million in pension liabilities in buyout deals
Alcoa Corporation - Alcoa Purchases Group Annuity Contracts for Certain U.S. Pension Plans
Alcoa Corporation - Alcoa Purchases Group Annuity Contracts for Certain U.S. Pension Plans
Alcoa Corporation purchased group annuity contracts from two subsidiaries of Athene Holdings Ltd. that transferred approximately $1 billion of pension obligations and assets associated with its defined benefit pension plans for about 4,400 US retirees and beneficiaries. This is the Alcoa’s fifth pension annuity transaction for a total transfer of approximately $3.3 billion in pension obligations and assets from 2018 to date.
#ART#Longevity#Pensions#UnitedStates
·investors.alcoa.com·
Alcoa Corporation - Alcoa Purchases Group Annuity Contracts for Certain U.S. Pension Plans
Yell Pension Plan agrees £370mn full buy-in
Yell Pension Plan agrees £370mn full buy-in
The Yell Pension Plan has agreed a £370 million buy-in with Pension Insurance Corporation, covering the remaining liabilities of the defined benefit scheme. This is the second transaction between the plan sponsored by digital marketing provider Yell and the insurer, following an initial £200 million buy-in in 2014 covering 500 pensioners.
#ART#Longevity#Pensions
·pensions-expert.com·
Yell Pension Plan agrees £370mn full buy-in
Eclipse Re issues $76m of private catastrophe bond notes
Eclipse Re issues $76m of private catastrophe bond notes
Sometime probably in the last half of 2022, Artex Capital Solutions's Eclipse Re private CAT bond issuance and reinsurance transformer platform, completed two issues of private CAT bond notes, totaling $76 million of new risk capital issued. One is a $65 million Eclipse Re Ltd. (Series 2022-3A) transaction, and the other is a just slightly over $11 million Eclipse Re Ltd. (Series 2022-6A) transaction.
#ART#CAT#ILS
·artemis.bm·
Eclipse Re issues $76m of private catastrophe bond notes
Lee Enterprises to transfer $86 million in pension liabilities to annuity contracts
Lee Enterprises to transfer $86 million in pension liabilities to annuity contracts
Lee Enterprises Inc. has purchased group annuity contracts from insurance companies to transfer $86 million in U.S. pension fund liabilities. The Davenport, Iowa-based publishing company completed the transactions with the undisclosed insurers in September, according to an 8-K filing with the SEC on September 23.
#ART#Longevity#Pensions#UnitedStates
·businessinsurance.com·
Lee Enterprises to transfer $86 million in pension liabilities to annuity contracts
Cat bond market slowed in Q3, but still grew $4.7bn in last year: Report
Cat bond market slowed in Q3, but still grew $4.7bn in last year: Report
According to Artemis.bm, global CAT bond issuance slowed down dramatically in Q3 2022, resulting in below-average issuance for the period. But still the outstanding cat bond market stands $4.7 billion bigger than at the same time a year earlier. While the third-quarter is typically the slowest of the year, Q3 2022 was particularly so with new CAT bond issuance coming in below-average for the period.
#ART#CAT#ILS
·artemis.bm·
Cat bond market slowed in Q3, but still grew $4.7bn in last year: Report
First half of 2022 sees record number of bulk annuity deals
First half of 2022 sees record number of bulk annuity deals
"The first half of this year witnessed 78 U.K. bulk annuity deals, a record for the period, which registered 19 more transactions than the first six months of 2021. Nearly £20 billion of risk transfer deals covering bulk annuities and longevity swaps occurred in the first half of 2022, according to Mercer. Total bulk annuity deal premia made up £12 billion, with more than half of the deals worth between £10 million and £100 million."
#Longevity#Pensions#ART
·pensions-expert.com·
First half of 2022 sees record number of bulk annuity deals
USAA returns for 40th catastrophe bond. Post-Ian pricing evident
USAA returns for 40th catastrophe bond. Post-Ian pricing evident
USAA, the U.S. primary mutual insurer, is looking to issue $150 million Residential Reinsurance 2022 Limited (Series 2022-2) CAT two-tranche four-year bonds, its 40th such issuance. They will provide USAA with indemnity and per-occurrence based reinsurance protection, covering it against losses from multiple US perils.
#ART#CAT#ILS
·artemis.bm·
USAA returns for 40th catastrophe bond. Post-Ian pricing evident
Barbados embeds parametric nat cat clause in sovereign bond issue
Barbados embeds parametric nat cat clause in sovereign bond issue
Barbados has embedded a parametric natural catastrophe event trigger within a sovereign bond issuance, with the occurrence of a natural disaster able to trigger a deferral of payments to holders of the dollar-denominated bond. The sovereign bond issue features defined events that could trigger a deferral of payments to bondholders by up to two years, which include tropical cyclones, earthquakes and significant rainfall events. These events will be defined and measured by the Caribbean Catastrophe Risk Insurance Facility (CCRIF).
#ILS#CAT#ART#Sovereign
·artemis.bm·
Barbados embeds parametric nat cat clause in sovereign bond issue
Sysco buying annuity from MassMutual to transfer $700 million in U.S. pension liabilities
Sysco buying annuity from MassMutual to transfer $700 million in U.S. pension liabilities
Houston-based Sysco Corp. entered into an agreement to purchase a group annuity contract from Massachusetts Mutual Life Insurance Co. to transfer about $700 million in U.S. pension plan liabilities. The annuity contract transfers the responsibility of paying benefits to about 10,000 retirees and beneficiaries. As of July 2, Sysco had $3.633 billion in U.S. pension plan assets, and $3.921 billion in projected benefit obligations, for a funding ratio of 92.7%.
#ART#Longevity#Pensions
·pionline.com·
Sysco buying annuity from MassMutual to transfer $700 million in U.S. pension liabilities
Insurers Eye Taking On More UK Pension Risk After Bond Turmoil
Insurers Eye Taking On More UK Pension Risk After Bond Turmoil
Corporate pension programs in the UK are increasingly looking to offload their risk to insurers as they try to insulate themselves from future market turmoil. Pension Insurance Corporation, one of the biggest players in the UK market, is seeing more requests for so-called full buyouts. It’s a sign of the sweeping changes in the industry after bond chaos in recent weeks sparked forced selling by some pension funds.
#ART#Longevity#Pensions#UnitedKingdom
·bloomberg.com·
Insurers Eye Taking On More UK Pension Risk After Bond Turmoil
Fidelis seeks $100m NA quake protection with new Herbie Re 2022-1 cat bond
Fidelis seeks $100m NA quake protection with new Herbie Re 2022-1 cat bond
Fidelis Insurance Holdings is looking to issue at least $100 million of Herbie Re Ltd. (Series 2022-1) single-tranche four-year CAT bonds focused on earthquake risks in California, Oregon, Washington and Canada. It will be structured on an annual aggregate and regionally weighted industry loss index basis, across four individual annual risk periods to the end of December 2026.
#ART#ILS#CAT
·artemis.bm·
Fidelis seeks $100m NA quake protection with new Herbie Re 2022-1 cat bond
Agfa UK Group Pension Plan signs £200mn buy-in
Agfa UK Group Pension Plan signs £200mn buy-in
The Agfa UK Group Pension Plan has completed a second annuity buy-in with Standard Life, covering the vast majority of the fund’s remaining liabilities. The £200 million bulk purchase annuity transaction, completed in September, covers the benefits of 770 members. It follows a £230 million partial buy-in completed in 2021, which covered 70% of pensioner liabilities.
#Longevity#Pensions#ART
·pensions-expert.com·
Agfa UK Group Pension Plan signs £200mn buy-in
West Pharmaceutical Services terminates U.S. pension plan
West Pharmaceutical Services terminates U.S. pension plan
West Pharmaceutical Services has terminated its U.S. defined benefit plan. The company then purchased a group annuity contract from an insurance company to transfer remaining liabilities. The company did not disclose the name of the insurance company, how much was transferred, and how much was distributed in lump sums. As of December 31, 2021 the company's global defined benefit plan assets totaled $249 million, while projected benefit obligations totaled $270 million.
#Longevity#Pensions#ART
·pionline.com·
West Pharmaceutical Services terminates U.S. pension plan
2 companies complete pension plan terminations with group annuity purchases
2 companies complete pension plan terminations with group annuity purchases
Prestige Consumer Healthcare and Commercial Vehicle Group completed pension plan terminations. Prestige Consumer Healthcare purchased a group annuity contract transferring $31 million in U.S. pension liabilities to an undisclosed insurance company. Commercial Vehicle Group completed its termination process with the purchase of a $25 million group annuity contract from an undisclosed insurance company.
#ART#Longevity#Pensions
·pionline.com·
2 companies complete pension plan terminations with group annuity purchases
Cooper-Standard to terminate U.S. pension plan
Cooper-Standard to terminate U.S. pension plan
Automotive parts company Cooper-Standard is terminating its U.S. pension plan. As part of the termination process, the company will offer lump sums to participants and settle the remaining liabilities after the distribution of lump sums through the purchase of a group annuity contract with an insurance company.
#ART#Longevity#Pensions#UnitedStates
·pionline.com·
Cooper-Standard to terminate U.S. pension plan