Canada Life Reinsurance has entered into a long-term longevity reinsurance agreement with Aegon to cover €12 billion of in-force liabilities.
Canada Life will reinsure close to 200,000 of in-payment and deferred pensioners under the agreement, which represents around one quarter of Aegon’s longevity exposure in the Netherlands. In a statement, Aegon said that the deal will reduce required capital and improve its capital position.
“This longevity reinsurance agreement is in line with our strategy to release capital from mature, spread‑based businesses,” said Alex Wynaendts, chief executive officer of Aegon. “Through this transaction, we are freeing-up significant capital from our Dutch life insurance activities. This underscores our commitment to maintain a strong capital position in the interest of all our stakeholders.”
Meanwhile, Jeff Poulin, global head of Canada Life Reinsurance, said that the transaction is “the result of a great effort by both our team and Aegon’s team and highlights Canada Life Reinsurance’s strength as a partner for reinsurance longevity transactions globally.”
Derek Popkes, chief operating officer at Canada Life Reinsurance, added that he was “delighted to grow and diversify our global longevity portfolio by working with Aegon to deliver a transformational longevity transaction tailored to their specific requirements.”
“We will continue to innovate and work in partnership with our valued clients to deliver the best risk transfer solutions matching their objectives,” said Popkes.
