UK - Investment bank JP Morgan Chase has today confirmed it has signed a second deal allowing it to buy into the buyout market.
A spokeswoman confirmed JP Morgan has sealed a £500m (€632m) agreement for an unnamed UK insurer's exposure to growing life expectancy risk.
JP Morgan said has passed all exposure on to third parties.
The spokeswoman told IPE this morning the deal involves long-dated longevity swaps with the UK insurer.
She added JP Morgan had placed the swap with a number of investors in the market.
JP Morgan has declined to name the company, since the agreement was the insurer would remain anonymous.
JP Morgan entered into a similar deal in February with Lucida, a new insurance company formed to take on longevity risk and corporate pension schemes.
Its deal at that time was designed to hedge longevity risk through a derivative contract linked to the LifeMetrics Longevity Index, launched by JP Morgan in 2007 to trade longevity risk.
Also, JP Morgan has done an earlier deal with Score, the spokeswoman said.
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