Artex Risk Solutions has confirmed that it is providing
management services for the Guernsey-based insurance vehicle set up
by the British Airways' Airways Pensions Scheme (APS) for
its recent longevity swap and reinsurance transaction.
It was reported last month that
APS had entered into a £1.6 billion transfer of longevity
risk, using a captive insurance cell in Guernsey to
intermediate the transaction and to access capacity in the global
insurance and reinsurance market provided by the likes of
Partner Re and Canafa Life Re.
Establishing the Guernsey insurance company to underwrite
longevity risk means APS is able to protect the scheme against
costs associated with potential increases in life
expectancy. Guernsey's Incorporated Cell Company
legislation was utilised to establish the insurer, which provided a
cost effective platform for the transaction combined with
flexibility for the Scheme in relation to any future
requirements.
