Scor has completed a £1.2bn longevity reinsurance deal with Pensions Insurance Corporation (PIC), covering six of its defined benefit schemes.

The deal covers around 8,000 in-payment lives and their spouses, and follows on from a £1bn contract agreed between the two in 2017, covering a further 7,000 in-payment lives.

It means that PIC longevity volumes for 2018, currently over £4bn, are expected to exceed over £5bn for 2018.

Commenting on the deal, Scor global head of longevity, Rupen Shah, said: “We are extremely pleased to have supported PIC in their continued efforts to help improve the security of retirees’ pensions.

“It was a pleasure working with the PIC team and we are particularly happy that the investment put in by both teams during our first transaction last year paid dividends in helping to complete this deal in such an effective and timely manner.”

According to PIC, it has now reinsured over 70 per cent of its total longevity exposure and has signed treaties with 11 highly rated insurance parties.

PIC head of longevity risk, Khurram Khan, said: “As UK bulk annuity market volumes continue to increase, reinsurance transactions need to become smoother and offer wider coverage. It is pleasing to see our reinsurance partners responding to these changing demands.”

Khan added that PIC was delighted to complete the deal with Scor.

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