Slaughter and May advised Aegon, one of the world’s largest insurance and pension companies, on its second innovative longevity transaction to reduce its risk from future improvements in longevity in the Netherlands.

The transaction, which was announced on 04 December 2013, has a maturity of 20 years with a commutation covering exposures that run longer than 20 years. It covers underlying longevity reserves in the Netherlands of EUR 1.4 billion.

Aegon’s partners in the execution of this transaction are Société Générale in the role of intermediary and Risk Management Solutions as modelling agent. The risk is assumed by third-party investors and reinsurers including SCOR.

CONTACTS

Financing: Richard Levitt (partner), Frances Churchard (associate), Thomas Coates (associate), Catriona Chau (trainee); Corporate and Insurance: Craig Cleaver (partner); Tax: Michael Lane (partner), Stefan Farahani (associate)