SCOR has completed a £1bn longevity reinsurance agreement with the Pension Insurance Corporation.

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 last year.

Along with the inclusion of SCOR, PIC now has eight longevity swap reinsurance counterparties. With the addition of other reinsurance undertaken this year, PIC has reinsured over 70 per cent of its total longevity exposure.

PIC head of longevity risk Khurram Khan, commented: “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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