Guernsey-based incorporated cell used to reinsure pension fund in £2 billion longevity risk transfer
MMC UK Pension Fund’s first longevity swap transaction to include active members, under incorporated cell Fission Gamma IC Limited, will cover approximately £2 billion in liabilities for 14,500 pensioners, deferred and active defined benefit members.
Fission Gamma, a new Guernsey-based incorporated cell, was created to insure the longevity risk of the fund and to reinsure this risk with leading global re-insurer Munich Re. Insuring longevity risk in this way enables the fund to protect itself financially against longevity risk.