Prudential Retirement, a business unit of Prudential Financial Inc.,
today announced its fourth longevity reinsurance transaction since 2011
with Rothesay Life Limited and its affiliates. Under the terms of this
new transaction, Prudential will provide reinsurance of longevity risk
to Rothesay Assurance Limited for a block of 93 pension schemes. The
transaction covers pension liabilities of $1.7 billion (approximately
equal to 1 billion Pounds Sterling) for 20,000 pensioners and deferred
members in the U.K.
This is the second longevity reinsurance transaction that Prudential has
closed in the past month, following its groundbreaking agreement to
reinsure $27.7 billion of longevity risk associated with BT Pension
Scheme liabilities.
"We are pleased to be able to collaborate with Rothesay in another
transaction that helps to provide secure retirement benefits for
thousands of pensioners," said Phil Waldeck, senior vice president of
Pensions and Structured Solutions for Prudential Retirement.
"This transaction demonstrates the continued strength of the pension
risk transfer market and the capacity in the insurance and reinsurance
sector to support the growing pension de-risking trend and to provide
greater certainty for managing plan liabilities with longevity risk
solutions," said Amy Kessler, senior vice president and Head of the
Longevity Risk Transfer team for Prudential Retirement.
“Rothesay Life is delighted to build upon its partnership with
Prudential with this new transaction,” said Tom Pearce, managing
director, Rothesay Life. “This latest deal is a further example of
Rothesay Life’s low risk approach to managing its business.”
Rothesay Life is an insurance company established in the U.K. Rothesay
Life provides annuity and other longevity products to corporate defined
benefit pension plans, tailored to meet the specific needs of corporate
sponsors, trustees and pension plan members. Rothesay Life is authorized
and regulated by the U.K.’s Prudential Regulation Authority.
Reinsurance contracts are issued by Prudential Retirement Insurance and
Annuity Company (PRIAC), Hartford, CT 06103. PRIAC is not a U.K.
authorized insurer and does not conduct business in the United Kingdom
or provide direct insurance to any individual or entity therein.
Prudential Financial, Inc. of the United States is not affiliated with
Prudential plc, which is headquartered in the United Kingdom.
Prudential Retirement delivers retirement plan solutions for public,
private, and non-profit organizations. Services include defined
contribution, defined benefit and non-qualified deferred compensation
record keeping, administrative services, investment management,
comprehensive employee education and communications, and trustee
services, as well as a variety of products and strategies, including
institutional investment and income products, pension risk transfer
solutions and structured settlement services. With over 85 years of
retirement experience, Prudential Retirement helps meet the needs of
over 4.0 million participants and annuitants. Prudential Retirement has
$330.5 billion in retirement account values as of June 30, 2014.
Retirement products and services are provided by Prudential Retirement
Insurance and Annuity Company (PRIAC), Hartford, CT, or its affiliates.
Prudential Financial, Inc. (NYSE:PRU), a financial services leader with
more than $1.1 trillion of assets under management as of June 30, 2014,
has operations in the United States, Asia, Europe, and Latin America.
Prudential’s diverse and talented employees are committed to helping
individual and institutional customers grow and protect their wealth
through a variety of products and services, including life insurance,
annuities, retirement-related services, mutual funds and investment
management. In the U.S., Prudential’s iconic Rock symbol has stood for
strength, stability, expertise and innovation for more than a century.
For more information, please visit www.news.prudential.com.
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Copyright Business Wire 2014