CAREY OLSEN: Carey Olsen advises MNRPF on £450 million longevity swap transfer

Press release from Carey Olsen, Friday 6 December, 2024.

Carey Olsen Guernsey has advised the trustee of the £1 billion Merchant Navy Ratings Pension Fund (“MNRPF”) on its longevity swap transaction with Metropolitan Life Insurance Company (“MetLife”) to cover approximately £450 million of pension liability exposure.

The transaction, which will form part of MNPRF’s investment portfolio, protects MNRPF against longevity risk and enhances security for MNRPF members.

The Carey Olsen Guernsey corporate team advising on the transaction comprised partner Tony Lane and senior associate Arya Hashemi. Linklaters acted as onshore counsel for the trustee and Eversheds Sutherland acted as onshore counsel for MetLife.

Tony Lane commented: “The management of longevity risk is a key consideration for pension trustees with life expectancy gradually increasing around the world. Guernsey is the leading captive insurance domicile in Europe and an important jurisdiction for trustees looking to protect their longevity exposure. We are delighted to have been able to utilise our market-leading expertise to have advised the trustee of MNRPF on this transaction and to assist in bringing this project to a timely conclusion.”

MNRPF is a multi-employer defined benefit pension fund with over 25,000 members. It is looked after by a group of trustees who run the Fund for the benefit of members and their beneficiaries.

MetLife is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management services in the United States, Asia, Latin America, Europe and the Middle East.