Pension Insurance Corporation has laid off £500 million worth of risks attached to pensioners living longer than expected, Financial Times reports. The specialist insurer expects offloading of longevity risk to reinsurers to free capital that will allow it to write between £250-300 million of new business.
The company has been unsuccessfully seeking to raise about £600 million in fresh capital from new investors since late 2009. Pension Corp wants to raise fresh capital to compete for larger deals or to take part in further consolidation of the annuity and pension insurance market.
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