The Phoenix Group has reinsured the longevity risk of its UK retiree policyholders with the Prudential Insurance Company of America (PICA).

Europe’s largest life and pensions consolidator says the deal not only helps with risk management but also enables it to continue to offer competitive pricing.

Phoenix Group head of bulk purchase annuities, Justin Grainger, said: “This transaction brings further depth to our reinsurer relationships and enhances our ability to offer competitive terms to pension schemes as we continue to develop our de-risking proposition.”

The deal also means that the New Jersey based PICA, together with its affiliate the Prudential Retirement Insurance and Annuity Company, now claim to provide reinsurance support to pension insurers accounting for roughly 90 per cent of the annual volume of buy-ins and buy-outs in the U.K. PICA has also struck deals with Legal & General and the Pension Insurance Corporation.

PICA head of international transactions for Longevity Risk Transfer, Rohit Mathur, said: “PFI has consistently focused on supporting the entire U.K. pension de-risking market. The addition of Phoenix is a culmination of our efforts over the past several years to do just that.”

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