NN Group positions for Dutch pension transition opportunities
NN Life & Pensions has transferred €4 billion of longevity risk to Prudential Financial Inc. through a new longevity swap and reinsurance arrangement, as NN Group continues to reshape its exposure to Dutch pension and annuity liabilities. The reinsurance agreement, which became effective in 2025, covers approximately 96,000 policyholders and extends an existing relationship between the two firms.
The latest longevity reinsurance deal with Prudential Financial covers around 96,000 NN Life & Pensions policyholders, with the arrangement effective from 1 July 2025. The structure combines a longevity swap with reinsurance, transferring the longevity risk on this block of business to The Prudential Insurance Company of America.
Dylan Tyson, president of Retirement Strategies and head of Prudential Financial's Global Retirement Center of Excellence, is responsible for the business line that executed the transaction with NN Life & Pensions. This deal represents Prudential Financial’s second international longevity reinsurance transaction with NN Life & Pensions, building on an earlier cross-border risk transfer between the parties.
NN Group reported that the NN Life Solvency II ratio rose to 200% in the first half of 2025, compared with 187% at the end of 2024. The group said this increase was mainly driven by positive market impacts and a longevity reinsurance transaction executed in June 2025.
On an earnings call, NN Group executives said they are targeting additional longevity reinsurance transactions beyond the latest €4 billion deal. They indicated that a further $6 billion in liabilities could be shed over time through similar structures.
In February 2025, Pacific Life Re completed a €2 billion longevity swap reinsurance agreement with Nationale-Nederlanden, adding another global counterparty to NN’s longevity risk transfer programme. This transaction preceded the Prudential Financial deal and contributed to the ongoing reduction of NN’s retained exposure to pension and annuity longevity risk.
Over the last decade, NN Group has offloaded pension- and annuity-related longevity risks to global counterparties. These counterparties include Prudential Financial and Pacific Life Re, which have both executed sizeable longevity swap and reinsurance agreements with NN entities in 2025.
NN Group has not specified a timetable for completing the additional $6 billion of planned longevity reinsurance transactions.
--- Sources: https://www.nn-group.com/investors https://www.artemis.bm/news/nn-group-offloads-4bn-of-longevity-risk-in-new-reinsurance-deal-with-prudential/ https://www.europeanpensions.net/ep/News-in-brief-8-august-2025.php
