Prudential Financial announced that its subsidiary has entered into a US$4 billion longevity risk transfer agreement with NN Life & Pensions, part of NN Group.
The reinsurance arrangement, effective July 1, will cover about 96,000 policyholders of The Prudential Insurance Company of America.
This is the second international longevity reinsurance deal between Prudential and NN Life & Pensions, expanding Prudential’s footprint in the Dutch market.
Prudential’s latest agreement follows its first longevity risk transfer with NN Life, completed at the end of 2023, which reinsured more than 200,000 policies valued at US$9.2 billion. That earlier transaction was part of Prudential’s broader reinsurance activities, which have amounted to over US$45 billion globally since 2011.
This portfolio includes significant transactions such as a US$27.7 billion longevity reinsurance deal with the BT Pension Scheme in the United Kingdom. The longevity risk transfer market itself has been expanding, particularly in the UK, where the defined-benefit pension de-risking sector is projected to reach £70 billion in 2025, with about £20 billion expected from longevity swap deals.
Insurers in recent years have also increasingly turned to funded reinsurance, which combines the transfer of both longevity and investment risks. In some cases, companies have ceded up to 30% of annual premiums – equating to £3 billion to £4 billion annually – through such arrangements, using structures like funds-withheld or funds-transfer mechanisms to manage risk and collateral obligations.
Dylan Tyson (pictured above), president of Retirement Strategies and head of the company’s Global Retirement Center of Excellence, said the collaboration with NN Life & Pensions builds the scale of the Institutional Retirement Strategies business in the Netherlands.
“This longevity risk transfer further demonstrates our commitment to the global retirement marketplace, as we seek to help millions more people protect their life’s work,” Tyson said.
Rohit Mathur, head of international reinsurance at Prudential Retirement Strategies, said the relationship formed with NN Life & Pensions since their initial 2023 transaction contributed to the timely completion of the deal.
“We continue to anticipate increased activity and demand in the Dutch market and are excited by the opportunities for Prudential to help those seeking to manage longevity risk as part of their strategic objectives,” Mathur said.
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