Canada Life Reinsurance has entered into a long-term longevity reinsurance agreement with NN Life, a subsidiary of NN Group. The agreement covers €5.3bn of in-force liabilities.
Under this agreement, the company will insure around 82,000 of in-payment defined benefit pensioners.
The agreement is deemed to strengthen Canada Life Reinsurance as a partner for reinsurance longevity transactions globally.
Canada Life Reinsurance Global head Jeff Poulin said: “I’m pleased that despite a significantly altered work environment due to Covid-19, Canada Life Reinsurance and NN Life’s teams worked together to complete this major transaction.
“It will allow us to further expand and diversify our global longevity business in 2020 and beyond.”
Canada Life Reinsurance Chief Operating Officer Derek Popkes said: “Canada Life Reinsurance remains focused on delivering for our clients in these challenging times. We look forward to a long and mutually beneficial relationship with NN Life. Our commitment to the Dutch market and our strong financials make us a good partner in the Netherlands.”
The company provides a range of innovative risk and capital management solutions for life, health and non-life risk to insurers, reinsurers and pension funds worldwide.
Last year, it partnered with Aegon in a long-term longevity reinsurance agreement to cover €12bn in-force liabilities.
Meanwhile, NN Life has also longevity swap and reinsurance arrangements with Munich Re and Swiss Re. The company transferred all of the longevity risk associated with €13.5 bn of pension liabilities from the Netherlands to the counterparties including Canada Life.