The latest from SCOR; the transaction covers liabilities of over 17,000 members of the Lloyds Bank No. 1 Pension Scheme.
With this landmark transaction, SCOR continues to successfully deliver on its longevity growth strategy as it enters its second decade in supporting the market to provide security and protection to pensioners. SCOR sees continued strong demand for longevity protection. This strong growth trajectory further underscores SCOR’s broader strategy to expand and diversify its Life & Health franchise.
SCOR announced today the completion of a £5.5 billion longevity reinsurance transaction covering liabilities of over 17,000 members of the Lloyds Bank No. 1 Pension Scheme. The transaction protects the trustee of the scheme by transferring the risk that members live longer than expected. SCOR was advised by global law firm CMS and WTW was the adviser to the Trustee for the transaction.
The deal is structured as an insurance policy where Scottish Widows Limited, a subsidiary of Lloyds Banking Group, acts as an intermediary insurer while SCOR provides 100% reinsurance coverage. In return for a series of fixed premiums, SCOR agrees to meet claims based on the pensions actually paid to members of the scheme. Both SCOR and Scottish Widows were selected as providers after a full and robust selection process carried out by the Trustee.
Laurent Rousseau, SCOR, Chief Executive Officer, said: “This is our largest longevity transaction to date. It reaffirms SCOR’s commitment to supporting pension scheme de-risking in the UK and globally. Recent world events such as the pandemic have underscored the uncertainty associated with life expectancy and the strategic necessity to provide adequate reinsurance solutions. We are pleased to provide protection and certainty to the Lloyds Bank pension members and broaden our Life & Health franchise.”