Slaughter and May advised Delta Lloyd Levensverzekering N.V. (DLL), the Dutch life insurance arm of the Delta Lloyd Group, on a transaction with Reinsurance Group of America (RGA) to mitigate longevity risk related to its Dutch life insurance portfolio. It is the first time that DLL has transferred any part of its longevity exposure to the reinsurance market.

The transaction takes the form of a six year longevity swap based on Dutch population mortality data and relates to underlying longevity reserves of approximately EUR 12 billion. The transaction will reduce DLL’s longevity exposure by reducing the financial effects of policy holders living longer than expected which results in longer durations of annuities and pension payments. The retroactive entry date of the transaction is 1 January 2014.

Slaughter and May worked as a team with Baker & McKenzie Amsterdam N.V., which advised DLL on the Dutch law aspects of the transaction.

CONTACTS

Corporate and Commercial: Craig Cleaver (partner); Financing: Caroline Phillips (associate), Victoria Watson (trainee).