Life reinsurance

Parent asset manager Apollo is set to nearly double its stake in the life insurer.

The banking fund’s ILS investments have increased as fellow UK investor IBM Pensions Trust keeps its allocation steady.

The second payment from its cash fund is in addition to $20mn approved in February.

Demand for longevity swaps has increased as Brexit approaches, the reinsurer said.

Terms of the deal were not disclosed.

The US remains the largest insurance market, accounting for $1.5tn of global life and non-life premiums.

The two firms first partnered at the start of this year.

The launch was first trailed this April.

The life settlement industry is looking to attract ILS capital but many industry practitioners are reluctant to enter the space due to concerns over valuations, returns and the sector’s past reputation for unscrupulous practices.

This is PartnerRe's first longevity reinsurance transaction in Canada.

The continuing decline in UK life expectancy rates, evidenced by new data updated for 2018, may increase the affordability of pension de-risking, according to experts.

The deal covers liabilities for more than 150,000 pensioners.