MetLife completes first UK pension plan liability longevity swap

Metropolitan Tower Life Insurance Company has completed its first longevity swap of UK pension scheme liabilities.

The transaction, which closed in the fourth quarter of 2021, means the company – a subsidiary of MetLife – will provide reinsurance for longevity risk associated with $3.5 billion in pension liabilities.

The lead adviser on the deal was Aon, while the broker was Zurich Insurance.

In a statement, Jay Wang, senior vice president and head of risk solutions for the retirement and income solutions business at MetLife, said, “We are delighted that MetLife has been selected to reinsure these obligations. As MetLife’s first pension scheme longevity exchange transaction, this marks an important milestone in the evolution of our UK longevity reinsurance business and underscores MetLife’s focus on innovation to respond to client’s needs.

MetLife’s announcement echoes news from last February when the company expanded into the UK longevity market with a $5 billion Rothesay deal.

Under another agreement with Rothesay, the MetLife subsidiary was to provide reinsurance coverage to Rothesay for longevity risk associated with approximately $320 million in pension liabilities.

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