PIC reinsures £1 billion of longevity risk with new counterparty, SCOR

London, 12 July 2017 – Pension Insurance Corporation plc (“PIC”), a specialist insurer of defined benefit pension funds, has concluded a £1 billion longevity reinsurance agreement with SCOR. The reinsurance agreement covers the longevity risk for around 7,000 in-payment lives and, where applicable, their spouses, across six defined benefit pension schemes which completed buy-in transactions with PIC over the past year.

With the addition of SCOR, a global multi-line organisation, PIC now has eight highly-rated longevity swap reinsurance counterparties. Together with other reinsurance undertaken in the year, PIC has now reinsured more than 70% of its total longevity exposure (68% at YE2016)

Khurram Khan, Head of Longevity Risk at PIC, said: “A full market tender process was run with SCOR being the successful reinsurer.  PIC is now protected against unexpected longevity increases for another 7,000 lives and can release regulatory capital as a direct result.  We have also acquired a new reinsurance partner thereby helping to widen our counterparty relationships under these very long-term contracts.”

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Notes to Editors:

For further information please contact:

Pension Insurance Corporation

Jeremy Apfel
+44 20 7105 2140                                                                                                            apfel@pensioncorporation.com

Teneo Blue Rubicon

Anthony Silverman
+44 (0)20 7260 2700                                                                                                        anthony.silverman@teneobluerubicon.com

About Pension Insurance Corporation
Pension Insurance Corporation plc (“PIC”) is a leading provider of buy-ins and buyouts to the trustees and sponsors of UK defined benefit pension schemes. At year end 2016, PIC had insured 134,900 pension fund members, had a strong solvency ratio of 164% and had £22.6 billion in financial investments. Clients include FTSE 100 companies, multinationals and the public sector. PIC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (FRN 454345). For further information please visit www.pensioncorporation.com

About SCOR
SCOR, the 4th largest reinsurer in the world, provides insurance companies with a diversified and innovative range of solutions and services to control and manage risk. Using its experience and expertise (“The Art & Science of Risk”), SCOR provides cutting-edge financial solutions, analytics tools and services in all areas related to risk – in Life & Health insurance (e.g. longevity, mortality, LTC) as well as in P&C insurance (e.g. natural catastrophes, agriculture, industry, transport, engineering). For further information please visit www.scor.com.

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