Under the terms of the transaction, Prudential Retirement will provide reinsurance of longevity risk to Rothesay Life and to its sister company, Paternoster, both wholly-owned subsidiaries of The Goldman Sachs Group, Inc. The transaction initially covers pension liability values of GBP 450 million, approximately equal to $723 million U.S. dollars.
“This new transaction is particularly significant in that it covers retired pension plan participants as well as younger beneficiaries who have yet to retire,” said Phil Waldeck, senior vice president and head of Prudential’s Pension & Structured Solutions business.