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Reinsurance counterparties broadened with £970m Munich Re deal

15 January 2016

Rothesay Life Limited, a leading life insurer specialising in providing de-risking solutions to UK defined benefit pension schemes, is pleased to announce that it has transferred £970m of longevity risk to global reinsurer, Munich Re.

Rothesay Life’s Managing Director Tom Pearce, said: “We are very pleased to have entered into our first reinsurance agreement with Munich Re, expanding to six the number of reinsurers we have done business with. Our low risk model and risk management expertise differentiate us as a company, so working closely and effectively with trusted reinsurance partners to transfer longevity risk is very important. Broadening our range of counterparties allows us to ensure we continue to provide our clients with the very best possible solutions. We are delighted to have completed this transaction with Munich Re.

The contract was signed ahead of Solvency II implementation and leaves us well positioned for the year ahead. We expect another busy year in 2016 for pension transactions.”

Martin Lockwood, Head of Longevity at Munich Re UK & Ireland Life, said: “We are delighted to have successfully completed another longevity transaction and particularly our first one with Rothesay Life.”

For further information please contact:
Temple Bar Advisory Limited +44 (0)20 7002 1080
Alex Child-Villiers or William Barker

Notes to editors

About Rothesay Life:

Rothesay Life was established in 2007 and has become one of the leading providers of regulated insurance solutions in the UK market for pensions de-risking, making payments of around £900m a year from over £19 billion of insurance contracts.  In 2015, Rothesay Life reinsured £2.5bn of longevity risk (2014: £2.8bn) and wrote new business in excess of £3.5bn.

Existing Rothesay Life clients include the pension schemes and members associated with such names as RSA, British Airways, Rank, Uniq, General Motors, the MNOPF (Merchant Navy Officers Pension Fund), InterContinental Hotels, Philips, GKN, Lehman Brothers Zurich Assurance and the Civil Aviation Authority.

Rothesay Life is a secure long-term provider of pensions, focused on

• a flexible and committed approach to execution;

• ongoing risk management to maintain balance sheet strength; and

• robust operational processes.

Rothesay Life is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.