Aegon €12 billion longevity swap ‘shows appetite of capital market for diversifying assets’

Availability of population data and risk modelling crucial to attracting investors

market volatility

Dutch insurer Aegon’s €12 billion (£10 billion) longevity swap with Deutsche Bank has been hailed as a significant development in efforts to utilise the capital markets for hedging longevity risk.

The transaction, considered to be the largest of its kind, is the first such deal aimed directly at the capital markets.

The trade, which will enable Aegon to hedge the liabilities on a portion of its annuity book, showed the appetite of investors for risks that are not correlated with market risks

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The future of life insurance

As the world constantly evolves and changes, so too does the life insurance industry, which is preparing for a multitude of challenges, particularly in three areas: interest rates, regulatory mandates and technology (software, underwriting tools and…

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