MetLife, Zurich complete $3.5bn longevity reinsurance transaction

24 January 2022

MetLife publishes: “Metropolitan Tower Life Insurance Company, a subsidiary of MetLife, Inc. (“MetLife”), announced today it has completed a significant longevity reinsurance transaction involving an unnamed U.K. pension scheme, using an independent U.K. regulated insurer, Zurich Assurance Ltd. (“Zurich”) as intermediary. The transaction, which was completed in Q4 2021, was MetLife’s first longevity swap of U.K. pension scheme liabilities. Aon was the lead adviser to the scheme for the transaction. Under the terms of the agreement, Metropolitan Tower Life Insurance Company will provide reinsurance for longevity risk associated with approximately $3.5 billion of pension liabilities.

“We are pleased MetLife has been selected to reinsure these obligations. As MetLife’s first pension scheme longevity swap transaction, this marks an important milestone in the evolution of our U.K. longevity reinsurance business and highlights MetLife’s focus on innovation to meet the customers’ needs,” said Jay Wang, senior vice president and head of Risk Solutions with MetLife’s Retirement & Income Solutions business.

“We are also delighted to have been able to build our relationships with Aon and Zurich in this market and are eager to continue the partnership to support pension scheme de-risking in a time of increased uncertainty,” said Wang.

Tom Scott, Associate Partner in Aon’s Risk Settlement Group, commented, “MetLife’s entry into the reinsurance market supporting U.K. longevity swaps is fantastic news for pension schemes. MetLife adds substantial capacity and appetite to an already very busy sector. With continued high demand from pension schemes for longevity de-risking solutions, this is very welcome and we look forward to another busy year in 2022.”

Greg Wenzerul, Head of Longevity Risk Transfer at Zurich adds, “We are delighted to have worked with MetLife on this latest deal. MetLife’s entry to this market, and the specific features of this transaction, are positive for this market as a whole.””

Source: MetLife