MLC Australia’s Post

Another racing bar chart, this time based on the number of transactions by insurer. A completely different story to the deal volumes by insurer. 📊 #MercerRiskTransfer #DataVisualisation #Bulkannuity #Risktransfer #Pensionrisktransfer #pension

The Great #buyout Acceleration! Part 3 👉 Following my two recent posts showing #bulkannuity deal volumes, the final chart in this series shows the number of transactions by insurer since 2009...in aggregate, this represents around 2,500 transactions over the period! 🤜 This shows a very different picture to my previous couple of charts based on deal volumes. In particular, whilst Legal & General are consistently in the top 3 in both lists, the number of deals done chart has Just Group plc sitting proudly at the top of the table, along with Aviva. Rothesay, who typically target the super-sized deals (and back book transactions) don’t feature as highly here. 🤜 Perhaps a surprising feature for many is that, although ££ volumes have grown very significantly, the number of deals has stayed amazingly static in the 150 to 200 range for most of the period, with just a small uptick to slightly over 200 transactions per year in the last couple of years. 🤜 Many of the earlier deals will have been pensioner-only #buyins, a transaction type that is less common now, but either way, this is a lot of schemes…and members covered... Aviva Canada Life UK Just Group plc Legal & General M&G plc Pension Insurance Corporation plc Rothesay Royal London Standard Life UK Mercer UK #MercerRiskTransfer

Last Friday the PRA wrote to insurance company CEOs regarding funded reinsurance and issued a new related supervisory statement. The PRA has seen some improvements from insurers in this area but still has some concerns, so has set out its expectations of insurers and is requiring them to provide further information over the course of the next 3 months. See our update below, which covers the following q's: - what is funded reinsurance (or "FundedRe" as it has been branded) and why do insurers use it? - what are the PRA's expectations? and - what does this mean for pension schemes?

"We see real potential on the development of targeted support" Steven Cameron outlines his thoughts on the Advice Guidance Boundary Review, which closes today, in the below IFA Magazine article 👇

The European Insurance and Occupational Pensions Authority (EIOPA) published its supervisory statement on the supervision of reinsurance concluded with third-country reinsurers. The objective of this supervisory statement is to highlight the risks stemming from the use of reinsurance provided by reinsurers operating under regulatory regimes not recognized as equivalent to Solvency II. Some parts of the statement, where relevant and explicitly stated, apply also to reinsurance arrangements with reinsurers from equivalent third countries. #eiopa #insurance #reinsurance #solvencyii #sii https://lnkd.in/ekxaBNBN

While schemes and insurers continue to ride the wave swelled by improved scheme funding levels, it presents a new challenge for Guaranteed Minimum Pension equalisation (GMPe) assessment. Solutions are entering the market that enables schemes to factor GMPe work into the PRT process, though: solutions that can dramatically reduce the time required to complete GMPe work at scale. In this PRT Endgame Series article, Heywood Director of PRT, Kelvin Wilson, looks at how to tackle a potential GMPe bottleneck: https://lnkd.in/e8cCq8EM

ICYMI: Veteran #adviser Kenny Meiring CFP® - Retirement and Estate Planning Specialist, shares the journey to set up his own business, the Financial Wellness Coach, with RUAN JOOSTE - a move he believes was his best career decision yet. #CFP #IFA #financialplanner #financialadvice

Did you know that Aviva's Q1 2024 performance report shows significant growth in its General Insurance and Workplace Pensions divisions? With a 16% increase in General Insurance premiums and £2 billion net flows in workplace pensions, Aviva is making waves in the industry. #AvivaGrowth #InsuranceIndustry #WorkplacePensions

On July 2, the European Insurance and Occupational Pensions Authority (EIOPA), in accordance with Article 29, paragraph 1, letter a) of Regulation (EU) 1094/2010, published an opinion on captive insurers con its website, with particular attention to intragroup operations and the application of the “prudent person principle”. The document is addressed to the competent supervisory authorities to contribute to the convergence of supervisory expectations within the EU, and aims to facilitate the proportionate and risk-based supervision of captive insurance undertakings, hence undertakings held by the parent company to insure its own risks while benefiting from reduced costs (Art. 13, paragraph 2 and 5 of the Solvency II-Directive). In the opinion, EIOPA lines out multiple supervisory expectations in various areas, specifying, for example, that supervisory authorities should, inter alia, (i) ensure that the classification of activities as lending or otherwise is not arbitrary, and also (ii) guarantee that captive insurance undertakings comply with the prudent person principle by assessing the portfolio as a whole considering various parameters such as liquidity and availability. Info: Giovanna Aucone #insurance #EIOPA #regulation https://lnkd.in/d6wRcRDS

A great piece here from Lara Desay and Michael Abramson summarising the PRA’s Dear CEO letter. This covers what funded re is, why the PRA believes there is more to be done to improve risk management approaches, and areas of specific focus. It may take some time for the “so what” to be clear, but points to watch out for might be: 1. Will this impact any current processes not yet signed that have been priced assuming some funded re? 2. Will this dampen the use of funded re, at least in the short term? 3. If we see a little less funded re, how will those impacted respond? Might this be lower new business targets, raising/allocating more capital and/or pricing discipline? 4. Will any impact be isolated to those who use funded re or lead to industry wide trends? This is against a backdrop of what is already a very interesting time for the risk transfer market. 2024 is forecast to be very busy (with total volumes sensitive to jumbo deals), established insurers targeting strong growth and new insurers looking to gain a footing. All whilst we wait for the outcome and implications of the wider “Mansion House” and Government pension review. https://lnkd.in/eqwv8tBM