This new HSBC deal is the first that sees a bank offloading the longevity risk associated with its pension plan members, which could suggest a broadening of appeal for these deals.
The longevity swap and risk transfer transaction have been structured as an insurance contract, utilising an HSBC-owned captive insurance vehicle domiciled in Bermuda and onwards reinsurance to PICA. The captive allowed HSBC to directly access the longevity reinsurance market which should result in substantial savings for the bank.
Partner Gary Harris led this transaction, with assistance from Partner Brad Adderley and Associate Shannon Cann.
Appleby’s specialist Insurance & Reinsurance team provides advice on the establishment, regulatory compliance and business operations of (re)insurance companies, as well as advising (re)insurance managers and brokers based in international jurisdictions.
They specialise in advising on the establishment, regulatory compliance and business operations of (re)insurance companies, as well as (re)insurance managers and brokers based in international jurisdictions. They advise private and listed companies, including major New York and London finance houses, as well as FTSE 100 and Fortune 500 household names.
