SCOR completes its largest longevity transaction to date

21 February 2022 — Andrei Victor
French reinsurer SCOR announced the completion of a GBP 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."

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