Aon advises Achmea Pension & Life Insurance on €8 billion longevity transaction
Dutch group Achmea Pension & Life Insurance has closed two longevity reinsurance transactions with Munich Re and Pacific Life Re. The transaction was advised on by Aon and four law firms.
Established in October last year as a joint venture between Achmea and Sixth Street, Achmea Pension & Life Insurance is a major life and pension insurance company serving over 2.1 million customers in the Netherlands.
The transactions with Munich Re and Pacific Life Re, two leading global reinsurers, cover an amount of approximately €8 billion in pension liabilities and roughly half of Achmea Pension & Life Insurance’s longevity risk exposure. Services and guarantees to policyholders are unaffected by the transaction.
Arthur van der Wal, Chief Executive Officer of Achmea Pension & Life Insurance, said: “Transferring roughly half of our longevity risk exposure is a deliberate and significant next step in executing our long-term strategy. The associated capital benefit will support our strategic growth ambitions in the area of pension buyouts, as well as the further optimisation of our investment portfolio.”
The advisors
The Aon team – led by Roelant de Haas in the Netherlands and Martin Bird in the UK – led the reinsurance broking and structuring. Hogan Lovells provided legal advice to Achmea, with Macfarlanes and NautaDutilh advising Munich Re and Debevoise & Plimpton advising Pacific Life Re.
De Haas, CEO of Aon Reinsurance Solutions Netherlands, said: “We are pleased to have supported Achmea on this strategically important capital solution and to have brought together a united Aon team with in-depth market expertise, industry insights and strong broking capabilities to deliver a successful transaction.”
Bird, Senior Partner and UK Head of Risk Settlement at Aon, added: “The global longevity reinsurance market remains highly competitive and has large scale capacity to deploy, with a strong appetite in relation to the Dutch market. By using Aon’s software for modelling mortality and other demographics as well as our broader reinsurance market insight and broking expertise, we were able to syndicate this milestone transaction for Achmea.”
Reflecting on the collaboration, Michiel Dijkstra, Head of Balance Sheet Management at Achmea Pension & Life Insurance, said: “Aon’s expertise and experience in the Dutch longevity market enabled us to bring this transaction to a timely and highly successful conclusion.”
