Pacific Life Re and NN Life complete €2bn longevity swap in Dutch market

Life and health reinsurer Pacific Life Re has completed a EUR 2 billion longevity swap reinsurance agreement with Nationale-Nederlanden (NN Life) in the Netherlands, covering a block of in-force individual annuity life policies.

As well as the in-force policies, the EUR 2 billion longevity reinsurance transaction includes an ongoing commitment to reinsure future new business via a flow arrangement between the two companies.

This is Pacific Life Re’s first longevity reinsurance deal in the Dutch market, which is viewed as a key growth area for the firm, and builds on the comprehensive portfolio of pension risk transfer and flow transactions the reinsurer has delivered in other regions.

The transaction was supported by professional services firm, Eversheds Sutherland.

“We’re delighted to announce the start of a new partnership with NN Life. We have successfully used our longevity swap and flow experience and been able to apply this to the Dutch individual annuity market. This has allowed us to develop a bespoke solution that supports NN Life in delivering on their commitments to customers,” said Phill Beach, Executive Vice President of Savings and Retirement at Pacific Life Re.

Chief Risk Officer at NN Life, Peter Brewee, added, “This deal underscores our efforts to continually look for value creating opportunities, reduce longevity risk in the Dutch market, and actively manage our balance sheet.”