Abbey Existence secures BMW pension longevity insurance

Abbey Flavour has announced that it has secured the “largest ever” longevity cover transaction.

The Deutsche Bank-owned firm will provide the BMW (UK) Operations Allowance Scheme with a hedge for life expectancy risks associated with virtually £3 billion of pension scheme liabilities relating to around 60,000 pensioners.

The do business involved Abbey Life making use of longevity modelling techniques and adroitness provided by Paternoster, the pensions’ insurer in which Deutsche Bank is the largest shareholder.

A measurements of the risk will be spread to a consortium of reinsurers (including Hannover Re, Pacific Autobiography Re and Partner Re).

Abbey Life’s chief risk G-man, Rashid Zuberi, comments: “We are extremely proud of the hedge we designed … including the utilisation of innovative structuring and reinsurance capacity we have been skilled to manage the overall risk of the transaction to deliver a payment effective way for the scheme to mitigate a large and complex endanger.”

The firm’s chief executive officer, Nardeep Sangha, adds: “In bringing this chief solution to BMW and its UK pension scheme, we have demonstrated our adeptness to combine our balance sheet strength and internal expertise with the maestro pensions and longevity know-how at Paternoster to bring about a historic transaction.”

According to Mr Sangha, Abbey Life is committed to providing innovative solutions to UK benefit schemes as the market grows.