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PrintJul 29, 2009
Trading Risk, a leading publication dedicated to insurance-linked-securities (ILS), exchange and OTC traded risk and other non-traditional forms of risk transfer, recently presented J.P. Morgan with its Life Transaction of the Year Award.
As a direct to capital markets transfer of longevity risk, the transaction is a milestone for investors and pension providers. Investor dialogue and diligence involved models, data and longevity analysis developed as part of J.P. Morgan's LifeMetrics toolkit alongside Canada Life's own portfolio specific mortality experience. The transaction was rated by the judges to be efficiently structured, well priced and successfully executed.
In commenting on the transaction and the award, Ed Giera, global head of Pension Advisory, said: "This innovative longevity swap transaction provided a cost-effective hedge for Canada Life and a new format for taking exposure to mortality experience of the reference annuitant population for capital markets investors. This market will be increasingly important for pension insurers and pension funds going forward."