The last few years have seen a trend towards
managing and, in several cases, transferring scheme risk. 2018 was
the biggest year yet for bulk annuity activity with UK pensions
funds transacting some £20 billion of buy-in and buy-out
deals. At the same time, behind the scenes, there has been an
increase in the use of captives to house defined benefit pension
scheme risk.
In an article for Captive Review, Robus Chief Executive Richard Le Tocq looks
at where captives sit amongst the alternative structures available
and, equally importantly, when might a longevity swap be favoured
over bulk annuity solutions.
Let's first remind ourselves of some of the key differences
between the options...
