Longevity

Managing future life expectancy risk has, in recent years, become an increasing focus for both insurers and pension schemes, with insurers needing to efficiently manage their capital requirements under Solvency 2. Closed DB pension schemes in particular, as they have matured, have increasingly developed a greater focus on de-risking their liabilities. As a result, during the last 5 years, the UK DB pension de-risking  market has grown significantly and continues to be highly active. We believe this increased activity is here to stay for the foreseeable future and is why our global centre of excellence is based at Munich Re UK Life Branch.

Longevity reinsurance has become a core part of Munich Re’s Life business in the UK. The longevity team has secured and overseen a number of significant longevity transactions in the UK, but also oversees the global reinsurance mandate for longevity and are responsible for Munich Re’s overall approach to reinsuring longevity risk, across all markets and jurisdictions.

The team built over the last 10 years led by Martin Lockwood, has over 50 years of combined experience within multiple areas of the industry, including at insurers, reinsurers and consultancies. We have a deep and detailed understanding of what is possible in this marketplace and can therefore deliver clients bespoke solutions to suit their particular requirements, over tight timelines if required.

Our high level of expertise in all key functions including pricing methodology, operational models, legal, structuring, and collateral considerations enables us to minimise execution risk. This also enables us to deliver efficient in-force business management solutions.

At Munich Re, we believe the key to successfully executing a longevity transaction is the combination of specialised knowledge, including actuarial, risk, legal and operational functions, along with strong project management. Our guiding philosophy, both for transacting new deals and managing in-force transactions, is to uphold the highest technical standards, while at the same time being pragmatic, solution-orientated and collaborative.

Munich Re has a strong record of successfully transacting with stakeholders to reinsure different types of longevity de-risking solutions, including longevity swaps, supporting longevity elements of buy-ins/outs and providing annuity back book reinsurance.

As a branch we write business onto the balance sheet of our main company in Munich, hence providing you with the financial security of one of the world’s largest reinsurers. Where longevity is ever-increasing, this transfer of risk becomes more and more essential to help improve your return on capital, free it up to pursue new opportunities or simply reduce the risks within your business.

We believe that our unique combination of expertise, financial strength and reinsurance capacity makes Munich Re an attractive longevity reinsurance partner for you and your longevity risk.

Please get in touch.