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Annuity Reinsurance

Managing longevity and market risk on annuity portfolios to secure income streams for retirees.

Life

Annuity reinsurance transfers longevity and investment risk, stabilizing an insurer's balance sheet and freeing capital for growth.

Power Re approaches this line as a specialist: we assess each risk on its own merits, price it with actuarial rigor, and structure cover that genuinely fits the cedant’s exposure and objectives, never a one-size template.

Structures

How we structure it

The structures we most often deploy for this line, proportional and non-proportional, tailored to your book.

Longevity risk

Sharing the risk that annuitants live longer than expected.

Payout security

Guaranteeing income streams under volatile markets.

Capital relief

Freeing capital for profitable redeployment.

Risk

Key risks & considerations

What we focus on when we underwrite this line.

Longevity improvement uncertainty.
Investment, reinvestment and ALM risk.
Basis risk in mortality assumptions.

Our appetite

Annuity portfolios with credible longevity data and a clear ALM framework.

Technical note

We transfer longevity risk and stabilize reserves; pricing is anchored on best-estimate improvement scales with explicit margins.

Models

Actuarial modeling

The frequency and severity models we use to price this line, and the loss it aggregates to.

Frequency models

Binomial (lives)Poisson (deaths)

Severity models

Fixed sum assuredEmpirical distribution of sums

Expected mortality claims

$$E[S]=\sum_{x} n_x\,q_x\,\mathrm{SA}_x$$

n_x lives aged x, q_x the one-year mortality rate, SA the sum assured.

Illustrative mortality

Age x	q_x per 1,000
30	1.0
40	1.8
50	4.2
55	6.5
60	10.5
65	17.0
70	27.0

Illustrative one-year mortality rates. Actual pricing uses recognized valuation and industry mortality tables.

Discipline

Our underwriting approach

The discipline is the same across every line we write.

Risk selection

We assess each risk on its merits and let marginal business go, growth by quality, not volume.

Pricing discipline

Experience and exposure rating, credibility-weighted, load the price for volatility and cost of capital.

Accumulation control

Clear limits manage concentration by event, geography and cedant across the portfolio.

Claims partnership

Fast, fair and transparent claims handling, the moment our promise is tested.

Why Power Re

Why cede Annuity Reinsurance to Power Re

✓
Specialist expertise
Deep technical knowledge of the line and of the Latin American market.
✓
Fast, clear decisions
A timely yes or no, with terms and capacity you can rely on.
✓
Financial strength
13× regulatory solvency coverage and a disciplined retrocession program.
✓
Long-term partnership
We co-design programs and stand with cedants through the cycle.

Let’s build resilient portfolios together

Partner with a reinsurer that combines technical discipline, financial strength and deep regional insight.

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