21 November 2023
Carey Olsen advises Fission Gamma IC Limited on MMC UK Pension Fund's £2 billion longevity risk transfer
Carey Olsen has advised Fission Gamma IC Limited ("Fission Gamma") as part of MMC UK Pension Fund's ("the Fund") first longevity swap transaction to include active members, which will cover approximately £2 billion of liabilities for 14,500 pensioners, deferred and active defined benefit members.
Fission Gamma, a new Guernsey-based incorporated cell, was created to insure the longevity risk of the Fund and to reinsure this risk with leading global re-insurer Munich Re. Insuring longevity risk in this way will enable the Fund to protect itself financially against longevity risk.
The Carey Olsen corporate team advising on the Guernsey aspects of the transaction included partner Christopher Anderson, senior associate Alex Mauger and associate Oliver Orton. The Fund was advised by Mercer, a wholly owned subsidiary of Marsh McLennan.
This transaction is the third longevity swap structured through the Mercer ICC. Carey Olsen also advised on the two prior transactions, reinforcing the firm's position as a go-to adviser on longevity transactions. Carey Olsen has advised on all 17 such transactions structured through Guernsey vehicles in respect of 10 pension trustees.