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Rothesay Life reinsures £2.8bn of longevity risk in record year

14 January 2015

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 transferred £2.8bn of longevity risk through reinsurance contracts in 2014. This represents a record year for the company with the risk for 70,000 members in 110 schemes reinsured.

The risk has been spread across several reinsurers, including Prudential Financial, Inc. and Pacific Life Re.

In 2014, Rothesay Life concluded seven bulk annuity transactions larger than £100m, receiving £1.7 billion of premiums from pension funds and exceeding 2013’s premium volume. The company also completed the acquisition of MetLife Assurance, which had approximately £3 billion in assets under management.

Rothesay Life’s Managing Director Tom Pearce, said: “Our low risk model and risk management expertise differentiate us as a business. Working closely and effectively with our reinsurance partners to transfer longevity risk is an important part of that.

A significant proportion of our total longevity risk is hedged and we will continue to be active in the reinsurance market as we take on new pension fund clients. We expect another busy year in 2015 for pension buy-outs while conditions remain favourable and corporate appetite for pension de-risking strong. ”

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 £700m a year from over £16 billion of insurance contracts.  In 2014, Rothesay Life received around £1.7 billion of bulk annuity premiums (2013: £1.6bn) and wrote seven deals over £100m, more than any other insurer in the sector. This strong growth has been achieved through the steady accumulation of pension scheme clients and significant strategic acquisitions.

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 and GKN.

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.

About Prudential Financial, Inc.

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with more than $1 trillion of assets under management as of September 30, 2014, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management.

In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit

About Pacific Life Re

Pacific Life Re works with clients in the UK, Ireland, Asia and North America to manage their mortality, longevity and morbidity risk. Having completed its first longevity swap in 2008 and reinsured the first ever UK pension scheme longevity swap in 2009, Pacific Life Re has reinsured over £13bn of pension and annuity liabilities, helping a range of insurers and pension schemes reduce their exposure to longevity risk.

Pacific Life Re Limited, a wholly-owned subsidiary of Pacific LifeCorp, is regulated by the Prudential Regulation Authority and the Financial Conduct Authority.