Transaction reinsures over €100m of Bank of Ireland Life's existing book of annuity business
Guy Carpenter has announced the completion of a multi-year annuity reinsurance transaction, on which Guy Carpenter advised Bank of Ireland Life, the life assurance arm of the Bank of Ireland Group, the largest retail bank in Ireland.
The transaction reinsures over €100m of Bank of Ireland Life's existing book of annuity business, and also a significant share of future annuities sold by the Irish company, estimated to be worth a further €40m a year, and is underwritten by Lucida plc, a new insurance company formed to take on longevity risk and corporate pension schemes.
Guy Carpenter's Risk Finance Team advised Bank of Ireland Life throughout and supported the process from initial discussions, through structuring and marketing to a number of reinsurance counterparties and to final commercial negotiations and documentation with Lucida.
Jonathan Bloomer, executive chairman of Lucida commented, “We are delighted that Bank of Ireland Life have chosen to partner with us for the long term. This exciting deal demonstrates our ability to offer innovative solutions and to work in partnership with leading insurers. We are looking forward to working alongside Bank of Ireland Life in the Irish annuity market.”
Sean Casey, finance director of Bank of Ireland Life said, “We are very pleased to work with Guy Carpenter on this reinsurance deal. From the outset we had very clear objectives: to secure an arrangement to enhance our competitiveness in the Irish market, and to control the risks in our annuity business. Our partnership with Lucida was a key element in our decision. They demonstrated an ability to work alongside us and be responsive to our requirements. We believe this is an excellent outcome for both our companies and we are very pleased to be working with Lucida on this deal.”