Prudential Retirement, a business unit of Prudential Financial, have successfully closed $1.7bn in new longevity reinsurance transactions during the first half of the year. This has attributing success to pivoting quickly to virtual closings during the global pandemic and a vibrant smaller end of the UK pension buy-in and buy-out market.
“Innovation comes in many forms and this spring, we found ourselves quickly adapting to an entirely virtual environment,” said Rohit Mathur, vice president and head of International Transactions for Prudential Retirement.
“While we are now in the midst of incredible uncertainty with the coronavirus, such uncertain times have strengthened our conviction that pension de-risking is an all-weather solution for our institutional client base. For those pension schemes that had de-risked their asset portfolio and that were ready to transact before COVID, there was nothing holding them back from moving forward with their deals.”
Overall, the U.K. market has remained resilient during the ongoing COVID-19 pandemic.
“Volatile markets often bring opportunity, so it pays to be prepared” Mathur said.
Mathur sees a robust pipeline in the U.K. for the second half of 2020 and the longevity reinsurance market ending the year strong.
“The market is functioning very smoothly, and the smaller end of the market has been quite active,” said Tom Cahill, vice president, longevity reinsurance, Prudential Retirement. “We are proud to have reinsured the risk of many individual schemes in the first half of 2020, including one stand-alone mid-sized transaction and well over a dozen smaller schemes through our flow reinsurance offerings. We are especially proud to be supporting a new insurer on our market-leading flow reinsurance platform.”