Our Strategies
Our Reinsurance Strategies
Prudential now has expanded its risk transfer strategies to provide reinsurance of longevity risk to insurers in the United Kingdom (U.K.).
Over the past decade, many pension plan sponsors have recognized their exposure to longevity risk. In addition, market volatility and regulatory reform has created significant new challenges for pension sponsors. Today, plan sponsors are using pension risk transfer as a means to achieve contribution certainty, remove financial statement volatility, allow greater focus on the sponsors’ core business, and ensure strategic flexibility.
Our new role as reinsurer of longevity risk helps increase the security of the promises made to pension participants around the world. We stand behind U.K. pension insurers and cover the risk associated with greater than expected increases in life expectancy.
With our reinsurance strategies, longevity risk is transferred from U.K. insurance companies (the cedants) to Prudential (the reinsurer) in exchange for reinsurance premiums.
Prudential's reinsurance strategies deliver the flexibility U.K. insurers need, and the additional security their clients demand. Moreover, our expanded capabilities in longevity risk transfer demonstrate Prudential’s commitment to be the preferred provider of flexible, innovative risk transfer strategies for U.S. plan sponsors—as well as insurers in the U.K.