Life & Pension Risk Honors Swiss Re’s Kortis Capital ILS Program with 2011 Longevity Risk Transfer Award
Swiss Re was recognized by Life & Pension Risk magazine as the recipient of the 2011 Longevity Risk Transfer award. This recognition honors the company’s innovative approach to longevity risk through its Kortis Capital ILS program.
As life expectancies continue to rise, the need to address longevity risk has become increasingly critical. According to Life & Pension Risk magazine, global longevity liabilities are estimated today at more than $20 trillion, yet reinsurers have faced limited appetite from the capital markets to acquire these risks.
As a writer of mortality risk, Swiss Re has utilized these exposures as a partial hedge against changes in mortality improvements. In December 2010, Swiss Re issued the first series of notes under its Kortis Capital ILS program, an innovative transfer of longevity trend risk to the capital markets. The notes provide fully collateralized protection against a significant and unexpected increase in UK mortality improvements, as relative to US mortality improvements. Kortis is recognized across the industry as the first rated and tradable security to provide protection against longevity trend risk.
Earlier this year, The Banker, a leading global financial publication and Trading Risk, a top insurance trade magazine, also recognized Swiss Re’s Kortis transaction in their annual awards programs.
The full list of this year’s recipients of the Life & Pension Risks Awards can be found in its entirety online at www.risk.net.
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