Longevity risk offers pension providers protection against the likelihood that members of a pension plan or holders of annuities and other life policies will live longer than expected.
Improved medical care, breakthroughs in disease control and prevention, and healthier lifestyles mean some pension funds and life insurance companies have found their exposure to this type of risk growing.
Last month Axa UK announced that its company pension scheme has closed a deal with the Reinsurance Group of America (RGA) to cover the longevity risk in its defined benefit pension plan covering about £2.8bn of liabilities.
John Occleshaw, global head of Canada Life Re, described the latest deal with Dutch-headquartered Aegon as another significant step in the development of its expanding reinsurance business with the European market.
The latest transaction for Aegon was written by the Barbados branch of The Canada Life Assurance Company.
Canada Life Re said it offers a range of solutions covering mortality, longevity, health and lapse risks for insurers, reinsurers and pension funds across the US and many European markets including the Netherlands, the UK, France, Germany, Italy, Spain, Portugal, Sweden and Ireland.
