Management Consulting

Aon advised NN Life on a significant longevity risk transaction involving €4 billion of defined benefit collective pension plan contracts. This transaction encompassed 96,000 unique policies, which included pensions in payment and deferred pensions for members aged 50 and over. The primary challenge faced by NN Life was managing their exposure to longevity risk while ensuring solvency and creating capacity for future growth in the Netherlands buyout market. Aon's tailored solution leveraged their expertise in the Dutch longevity market, facilitating a timely and successful conclusion to the transaction. The engagement involved strong interest from reinsurers in hedging Netherlands longevity risk, particularly in light of the anticipated increase in bulk annuity activity due to the Dutch Future Pensions Act. Aon's Demographic Horizons framework, which includes a leading base mortality postcode model for the Netherlands, played a crucial role in advising NN Life throughout this process. As a result of this transaction, NN Life was able to effectively manage its longevity risk, enhancing its solvency dynamics and positioning itself for future growth opportunities in the market. This marked the fourth significant longevity hedge transaction that Aon has facilitated for NN Life, underscoring the ongoing partnership and the effectiveness of Aon's specialized solutions in addressing niche issues within the longevity risk landscape.