LIVE WEBCAST: 24 September 2020
Pension scheme longevity risk hedging will still make strategic sense for many schemes, despite Covid-19
Following 2019’s record year for UK pension scheme longevity risk transfer transactions, 2020’s volume looks likely to reach circa £40bn including over £12bn of bulk annuities and over £12.5bn of longevity swaps already completed in H1 2020.
The UBS (UK) Pension Life Assurance Scheme (the “Scheme”) is a long-standing Trustee client of Mercer and longevity risk management had been on the Trustee’s agenda for several years, alongside broader strategic de-risking. Mercer led commercial and structuring negotiations of the transaction for the Trustee, having initially considered the full-range of longevity risk transfer options (including bulk annuities). Mercer were also able to work collaboratively with UBS Sponsor representatives throughout the project.
The Scheme’s longevity swap, which covers the majority of the Scheme’s DB pensioners, was structured as an innovative “pass through” insurance contract with UK life insurer Zurich and sees 100% of the longevity risk reinsured by Canada Life Reinsurance. Some trustees and sponsors may naturally query whether it can still make strategic sense to hedge longevity risk for their own schemes, despite Covid-19. We’re delighted to be joined by Mark Thompson, Chair of the Trustee’s Investment Committee and Sheila Harney of Canada Life Reinsurance to give Trustee’s and reinsurer’s perspectives respectively.
Mercer will add insight into how, in light of the ongoing Covid-19 pandemic, other scheme trustees can consider whether the strategic rationale or effective pricing could alter their decision making, applicable to a wide range of scheme sizes.
Who Should Attend?
DB Pension Scheme Trustees, Investment Committee members, Pension Scheme Managers, Finance Directors/Controllers/Managers, HR Director, HR contacts
Suthan Rajagopalan, Mercer
Alastair Walker, Mercer
Sheila Harney, Canada Life Reinsurance
Mark Thompson,UBS (UK) Pension & Life Assurance Scheme