Management Consulting

Aon advised HSBC in Bermuda on a significant £7 billion longevity swap, which involved the HSBC Bank (UK) Pension Scheme and Prudential Insurance Company of America (PICA). This transaction is noted as the second-largest of its kind, addressing approximately half of the pension scheme's liabilities. The solution utilized a captive insurance structure owned by HSBC, with PICA providing reinsurance for the deal. Aon's multi-disciplinary team played a crucial role in establishing and licensing the new captive solution, as well as advising on the necessary operational infrastructure to support the ongoing management of the transaction. The team, which included members from Aon’s UK-based risk settlement group and Aon Insurance Managers (Bermuda), demonstrated a blend of jurisdictional expertise and specialized knowledge in longevity deal structuring. The successful execution of this transaction highlights Aon's capability to innovate within the pension scheme de-risking market, which is experiencing strong demand for both bulk annuity and longevity-only solutions. The collaboration across various offshore locations and the integration of diverse expertise were key factors in facilitating this landmark deal.