Rothesay Life Partners with RGA UK for Longevity Risk Mitigation
LONDON, July 19, 2011 – Rothesay Life and RGA UK are pleased to announce the signing of a treaty wherein RGA UK is reinsuring a block of Rothesay Life’s longevity risk.
The agreement, which went into effect 1 July 2011, will secure approximately GBP 1.1 billion present value of future pension payments for a block of approximately 32,000 deferred and retired pensioners. The block consists of 10 pension schemes, insured by Rothesay Life and its recently acquired sister corporation, Paternoster UK Limited. Structured as a full indemnity transaction, the reinsurance contract provides benefit payments for the remaining lifetime of the pensioners in exchange for a predetermined fixed series of future reinsurance premiums.
"This is an important transaction for Rothesay Life as we continue our efforts to integrate and risk-manage the Paternoster business. We are delighted to partner with RGA on such a unique transaction, which involves multiple schemes and requires market-leading underwriting expertise. We look forward to continuing to partner with the RGA team," says Addy Loudiadis, Chief Executive Officer of Rothesay Life.
“We are proud to have been chosen by Rothesay Life to reinsure this block of longevity risk,” says David Gulland, Managing Director, RGA UK. “With life spans increasing in the UK and worldwide, longevity risk, especially for managers of pensions and annuities, is growing. The solutions RGA provides can play a key role in ensuring the security of the guarantee pension schemes offer to their participants. We look forward to continuing to strengthen our relationship with Rothesay Life.”
Notes to Editors
Reinsurance Group of America, Incorporated (RGA) is a leading global life reinsurer with approximately US$2.6 trillion of life reinsurance in force and assets of more than US$29.5 billion. From its St. Louis, Missouri (U.S.) headquarters and offices in the UK and in 22 additional countries around the world, RGA delivers expert solutions in individual life reinsurance, individual living benefits reinsurance, group reinsurance, financial solutions, facultative underwriting and product development. RGA is also the 2010 winner of the “Best Reinsurer for Longevity Risk Transfer” award from the 2010 Life & Pension Risk Awards, an annual awards program sponsored by Life & Pension Risk magazine.
Rothesay Life is an insurance company established in the UK as a wholly-owned subsidiary of The Goldman Sachs Group, Inc. 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 scheme members.
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
The agreement, which went into effect 1 July 2011, will secure approximately GBP 1.1 billion present value of future pension payments for a block of approximately 32,000 deferred and retired pensioners. The block consists of 10 pension schemes, insured by Rothesay Life and its recently acquired sister corporation, Paternoster UK Limited. Structured as a full indemnity transaction, the reinsurance contract provides benefit payments for the remaining lifetime of the pensioners in exchange for a predetermined fixed series of future reinsurance premiums.
"This is an important transaction for Rothesay Life as we continue our efforts to integrate and risk-manage the Paternoster business. We are delighted to partner with RGA on such a unique transaction, which involves multiple schemes and requires market-leading underwriting expertise. We look forward to continuing to partner with the RGA team," says Addy Loudiadis, Chief Executive Officer of Rothesay Life.
“We are proud to have been chosen by Rothesay Life to reinsure this block of longevity risk,” says David Gulland, Managing Director, RGA UK. “With life spans increasing in the UK and worldwide, longevity risk, especially for managers of pensions and annuities, is growing. The solutions RGA provides can play a key role in ensuring the security of the guarantee pension schemes offer to their participants. We look forward to continuing to strengthen our relationship with Rothesay Life.”
Notes to Editors
Reinsurance Group of America, Incorporated (RGA) is a leading global life reinsurer with approximately US$2.6 trillion of life reinsurance in force and assets of more than US$29.5 billion. From its St. Louis, Missouri (U.S.) headquarters and offices in the UK and in 22 additional countries around the world, RGA delivers expert solutions in individual life reinsurance, individual living benefits reinsurance, group reinsurance, financial solutions, facultative underwriting and product development. RGA is also the 2010 winner of the “Best Reinsurer for Longevity Risk Transfer” award from the 2010 Life & Pension Risk Awards, an annual awards program sponsored by Life & Pension Risk magazine.
Rothesay Life is an insurance company established in the UK as a wholly-owned subsidiary of The Goldman Sachs Group, Inc. 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 scheme members.
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.