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US-based SageSure issued $50 million Gateway Re Ltd. (Series 2023-3) single-tranche three-year CAT bonds. It covers named storms in Alabama, North and South Carolina, Louisiana, Mississippi, Texas, Virginia, and New York on a county-weighted industry-loss index annual aggregate basis.

US-based private equity firm Blackstone issued $250 million Wrigley Re Ltd. (Series 2023-1) two-tranche three-year CAT bonds. Both tranches are indemnity based, with the $100 million Class A tranche covering named storm-related losses across the US and Canada on a per occurrence basis, and earthquakes across US states except California and Canada on an annual aggregate basis. The Class B tranche will cover California earthquakes on an annual aggregate basis. [Artemis]

Property catastrophe bond issuance in 2023 has now exceeded the $10 billion mark, and so is well on track to beat the previous annual record of $12.5 billion seen in 2021. The Artemis Q2 2023 Catastrophe Bond and related insurance-linked securities (ILS) Market Report showed that property cat bond issuance reached $9.7 billion in the first half of the year, which is a record for the period.

This year is set to be a bumper year for UK buyouts, with volumes on track to exceed H1 volumes in any previous year. According to Imogen Cothay FIA, partner, Lane Clark & Peacock LLP, “there are a number of very large transactions coming to market in the second half of the year. Whether volumes for 2023 as a whole end up being record-breaking will depend on the extent to which these deals close before the year-end.” The buy-in market has also been buoyant. Hymans Robertson analysis indicates that unprecedented demands means that pension scheme buy-in volumes could be around £25bn in the first half of 2023.

Aon’s private catastrophe (CAT) bond platform Randolph Re issued $45 million Randolph Re (Series 2023-3) single-tranche one-year zero-coupon CAT bonds, covering California wildfire-related losses on a per-occurrence indemnity trigger basis.

The BT Pension Scheme has entered into a UK £5 billion longevity swap arrangement with Reinsurance Group of America (RGA Re), using its captive insurer to intermediate the reinsurance capital. the BT Pension Scheme utilised its own infrastructure to enable it to interface more directly with the reinsurance market. In this case, the longevity swap reinsurance has been facilitated through an insurance intermediary, using the pension’s existing captive insurer, which it said “efficiently” leveraged its existing infrastructure.

Specialty re/insurer AXIS Capital has decided not to renew a catastrophe (CAT) bond this year to removed some of basis risk from AXIS’ reinsurance arrangements. AXIS Capital’s $165 million Northshore Re II Ltd. (Series 2019-1) CAT bond matured in June this year and the company opted to replace it with indemnity coverage. That cat bond and the others AXIS still has in-force, are structured to use industry loss triggers.

"US-based Kellogg Co. completed a pension buy-in transaction to insure about $590 million in liabilities for its U.K. pension plan. The food company purchased a group annuity contract from an undisclosed insurance company to complete the transaction in May, according to its 10-Q filing. It is the first known pension risk transfer transaction by the U.S.-based company for its U.K. pension plan. In 2020, Kellogg purchased a group annuity contract from another undisclosed insurer to transfer about $470 million in U.S. pension plan assets and liabilities." [Pensions & Investments]

"US-based Goodyear Tire & Rubber Co.completed the termination of the Cooper Tire U.S. salaried pension plan during the second quarter, the company disclosed in its 10-Q filing with the SEC. Goodyear said in the filing that during the quarter ended June 30, 2023, it completed lump-sum payments to participants and purchased a group annuity contract to an undisclosed insurer." [Pensions & Investments]

"US-based Public Service Enterprise Group Inc. signed a commitment to purchase a group annuity contract from Prudential Insurance Co. of America to transfer about $1 billion in U.S. pension plan liabilities. The utility company said in its 10-Q filing with the SEC that it signed the commitment in July 2023, and it will transfer the responsibility of paying benefits of about 2,000 retirees from "PSEG Power & Other, excluding Services (Participants)" to the insurer." [Pensions & Investments]

Mitchells & Butlers Pension Plan concluded a £1.2 billion bulk annuity transaction in May 2023 covering 20,200 deferred and pensioner members of the plan. Mitchells & Butlers Plc has a history dating back to 1898 and operates a number of the UK’s restaurants, pubs and bars.

A special issue of the Journal of Demographic Economics contains 10 contributions to the academic literature all dealing with longevity risk and capital markets. Draft versions of the papers were presented at Longevity 16: The Sixteenth International Longevity Risk and Capital Markets Solutions Conference that was held in Helsingør near Copenhagen on 13–14 August 2021. It was hosted by PerCent at Copenhagen Business School and the Pensions Institute at City, University of London.

"The U.K.-based P&O Pension Scheme insured £440 million in liabilities through a full buy-in with Rothesay Life. The latest deal covers the liabilities of around 5,300 plan participants. The pension fund previously completed one buy-in, which covered the liabilities of its retired participants in 2007. The initial transaction was insured by Paternoster, which was acquired by Rothesay in 2011. The plan had £1.4 billion in assets as of December 31, 2022." [Pensions & Investments]

U.S.-based Sandy Spring Bancorp completed a $33.7 million pension obligation transfer on August 23 to complete the termination of its pension plan, according to an 8-K filing. Based on participant elections, the pension obligations were distributed through a combination of lump sum payments to participants and the purchase of a group annuity contract with Principal Life Insurance Company. [Sandy Spring Bancorp 8-K]

U.K.-based ITB Pension Funds has purchased a group annuity contract from insurance company Just Group for a fifth and final pension buy-in transaction for its Open Fund. The agreement was reached on July 21, and the buy-in insures £290 million in pension liabilities, which represents the remaining participants in the Open Fund that were not previously insured. [Pensions & Investments]

"Since 1997, the catastrophe (CAT) bond market has provided the insurance industry with protections against natural disasters that have grown more frequent and costly. This article explains how CAT bonds work, and then looks at how the market for them has grown in size, coverage, and sophistication over the past two decades. It also explores how and why different types of institutions use CAT bonds to transfer insurance risks."

The Association of British Insurer’s (ABI) Pension and Assurance Scheme completed an £18.4 million buyout with Just Group in June 2023. The deal secures the benefits of remaining members of the pension scheme, including 16 pensioners and 118 deferred members. [Pensions Expert]

Analysts at Fitch Ratings say that the Vesttoo scandal may push investors in insurance-linked securities (ILS) to focus on the safety of structures and the security of collateral. Of course, it’s important to note that the majority of ILS structures, especially catastrophe bonds and most ILS fund manager strategies, utilise cash and secure, highly rated liquid assets, such as US treasuries, to provide collateral security for their reinsurance and retrocession obligations. But, where there are letters of credit (LOCs) in the ILS industry, as well as more broadly in reinsurance, with these being the form of collateral that is the focus of the Vesttoo scandal as billions of dollars worth have been found to be fraudulent.

Bermuda-based Isosceles Insurance issued six tranches of privately placed CAT bonds with a total value of $87.6 million, structured as discounted zero-coupon participating notes maturing in less than a year and listed on the Bermuda Stock Exchange.

UK-based M&G announced a £331 million buy-in transaction of the M&G Group Pension Scheme (M&GGPS), one of the group’s own pension schemes, as well as a £286 million bulk annuity transaction for an external scheme. The buy-in was insured through M&G's wholly owned life and pensions subsidiary Prudential. The whole scheme buy-in for the M&GGPS secured the benefits of 1,414 pensioner and deferred members. M&G said active members were given the choice of either continuing with defined benefit accrual in a different M&G group pension scheme or becoming part of the bulk purchase transaction and joining a defined contribution arrangement for the future. [Pension Expert]

The California Earthquake Authority (CEA) is looking to issue $150 million or more Ursa Re Ltd. (Series 2023-2) single-tranche three-year CAT bonds. They will cover California earthquakes on an indemnity and annual aggregate basis, which is typical of all CEA CAT bonds. [Artemis]

According to MetLife's 2023 Pension Risk Transfer Poll, 89% of U.S. corporations with defined benefit plans it surveyed look to fully transfer all their liabilities in an average of 4.1 years. Catalysts include inflation (49%), increases in volumes of retirees (42%), market volatility (42%) and rising interest rates (42%) and 35% saying favorable annuity pricing. 250 executives at 250 corporations with defined benefit plan assets of $100 million or more were polled between July 5 and July 27. [Pensions & Investments]

UK-based M&G entered into a £331 million buy-in transaction for one of its own pension funds, the M&G Group Pension Scheme, that was ensured by its parent company, Prudential. Active plan participants could choose between continuing with defined benefit accrual in a different M&G group pension fund or being part of the bulk purchase transaction and joining a defined contribution plan. [Pensions & Investments]

Hannover Re’s Kaith Re vehicle issued $15 million LI Re (Series 2023-1) two-year private CAT bonds. They cover California earthquake risk. Further details are unavailable at this time. [Artemis]

The California Earthquake Authority (CEA) issued $230 million Ursa Re Ltd. (Series 2023-2) single-tranche three-year catastrophe (CAT) bonds versus the original $150 million target. They will cover California earthquakes on an indemnity and annual aggregate basis, which is typical of all CEA CAT bonds. [Artemis]