The Global View

Growth in the Longevity Risk Transfer Market ‘Inevitable’

Kessler: Market ‘will double within next few years’

September 22, 2015 — LYON, France–(BUSINESS WIRE)–Amy Kessler, senior vice president and head of Longevity Reinsurance within PFI’s Pension Risk Transfer business, will highlight in an address in September before pension, insurance, capital markets and actuarial professionals together with the leading academicians in the field that many of the same catalysts that transformed the U.K. marketplace are now arriving in the United States and beyond. Prudential Retirement is a business unit of Prudential Financial, Inc. (PFI) (NYSE:PRU). PFI is headquartered in the United States and is not affiliated with Prudential UK headquartered in the United Kingdom.

“Today, all kinds of companies are benefiting from flexible risk transfer solutions that secure member benefits and help corporate sponsors achieve a lower-risk future,” said Kessler in advance of her address, “The Longevity Risk Transfer Market at $250 Billion: Innovation, Globalization and Growth.”

In her address to delegates, Kessler stressed that innovation has been crucial to recent growth as insurers and reinsurers have broken through the early barriers to large transactions by perfecting a full range of solutions for pension funds of all shapes and sizes.

A $250 Billion Transfer

“Globalization is just beginning with activity spreading quickly from the U.S., U.K., Canada and the Netherlands to France, Germany, Switzerland, the Nordics, Australia and beyond,” she added. “Continued growth in the longevity risk transfer market is inevitable.”

Kessler, in France to speak at the Eleventh International Longevity Risk and Capital Markets Solutions Conference, noted that roughly $250 billion in U.S., U.K. and Canadian pension liabilities have been transferred to global insurers and reinsurers since 2007.

Kessler is responsible for PFI’s successful launch of its longevity reinsurance product and has, together with her team, led more than $35 billion in international reinsurance transactions since 2010 covering the pension liability risk of British Airways, Rolls-Royce and nearly 200 other pension plans in the United Kingdom. She recently led PFI’s reinsurance team in the largest and most innovative longevity risk transfer transaction on record for the BT Pension Scheme. In addition, she is currently leading the launch of PFI’s reinsurance solutions for pensions in other global markets.

Today, all kinds of companies are benefiting from flexible risk transfer solutions that secure member benefits and help corporate sponsors achieve a lower-risk future

PFI delivers retirement plan solutions for public, private, and nonprofit 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, PFI helps meet the needs of 4.0 million participants and annuitants. PFI has $372.6 billion in retirement account values as of June 30, 2015.

Retirement products and services are provided by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT, or The Prudential Insurance Company of America (PICA), Newark, NJ. PRIAC and PICA are wholly owned subsidiaries of PFI, headquartered in the United States and not affiliated with Prudential plc of the United Kingdom. Neither PICA nor PRIAC is licensed or regulated by the U.K. Prudential Regulation Authority as an insurer or regulated by the Financial Conduct Authority, nor does either offer insurance or reinsurance in the United Kingdom. PICA and PRIAC do provide off-shore reinsurance to companies that have acquired U.K. pension risks through transactions with U.K. plan sponsors.

 

 

PFI (NYSE: PRU), a financial services leader, has operations in the United States, Asia, Europe, and Latin America. PFI’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., PFI’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/