Prudential and Aviva Reach $1.4 Billion Longevity Reinsurance Agreement

Posted on 10/30/2020

There is surging demand for pension de-risking solutions in the U.K. Insurers are seeking reinsurance partners to take on the full asset and longevity risk in order to bring additional capital and asset management expertise to the market to fuel its continued growth.

The Prudential Insurance Company of America (PICA), which is part of Prudential Financial, Inc., and Aviva PLC have reached their first longevity reinsurance transaction, establishing a new reinsurance relationship. In the agreement, PICA assumes the longevity risk for nearly US$ 1.4 billion in pension liabilities. The deal closed in June 2020.

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