NN Life & Pensions has completed a €4bn longevity risk transfer deal with Prudential Financial Inc (PFI), marking the Dutch insurer’s second such transaction with the US group in less than two years.

The reinsurance deal covers around 96,000 policyholders and was arranged through PFI’s primary US insurance subsidiary. It represents another step in the group’s expansion of its institutional retirement strategies business in the Netherlands.

PFI first entered the Dutch longevity reinsurance market in 2023, when it executed an earlier agreement with NN Life & Pensions, a subsidiary of NN Group.

The latest deal deepens that relationship and underscores growing demand for risk transfer solutions in the Netherlands, where insurers and pension funds are increasingly seeking to reduce exposure to longevity risk.

The Dutch pension fund of US company Dow Chemical announced recently it is aiming to conclude a buyout deal and is currently investigating the first quotes it has received from insurers. If the outcome is positive, the fund intends to submit an application to regulator DNB for a collective value transfer before the end of this year.

At PFI, Dylan Tyson, president of retirement strategies and head of the company’s global retirement centre of excellence, said: “PFI is pleased to again collaborate with NN Life & Pensions, as we build the scale of our institutional retirement strategies work in the Netherlands.”

“This longevity risk transfer further demonstrates our commitment to the global retirement marketplace, as we seek to help millions more people protect their life’s work,” he added.

Rohit Mathur, head of international reinsurance at PFI retirement strategies, said the transaction benefited from the parties’ previous experience working together.

“The strong relationship we’ve fostered with NN Life & Pensions since the first transaction in 2023 led to a smooth and efficient close. Our ability to deliver customised reinsurance solutions further solidifies us as a global leader in assisting insurers and plan trustees.”

Mathur continues to anticipate increased activity and demand in the Dutch market and is “excited by the opportunities for PFI to help those seeking to manage longevity risk as part of their strategic objectives”.

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