Fission Gamma, the new Guernsey-based incorporated cell, was created to insure the longevity risk of the fund and to reinsure this risk with leading global re-insurer Munich Re. Insuring longevity risk in this way enables the fund to protect itself financially against longevity risk.
MMC UK Pension Fund’s first longevity swap transaction to include active members, will cover approximately £2 billion in liabilities for 14,500 pensioners, deferred and active defined benefit members.
The Guernsey aspects of the transaction were advised by law firm Carey Olsen, including partner Christopher Anderson, Senior Associate Alex Mauger and Associate Oliver Orton. The fund was advised by Mercer, a wholly owned subsidiary of Marsh McLennan.