logo image

Newark, Calif. - December 05, 2013  RMS, the world's leading catastrophe modeling firm, today announced that the company performed risk assessment analysis for the capital markets instrument used by Aegon to hedge the longevity risk of €1.4 billion (USD 2.3 billion) of reserves through Societe Generale to capital markets investors and reinsurers. The transaction protects Aegon against the possibility that mortality improvements in the Netherlands exceed expectations and outpace those in the United States.

RMS provided the medically based model of longevity risk that underpins the structure of the transaction. At the 20-year maturity of the transaction, the final payment is based on modeled scenarios that project mortality another 50 years into the future – allowing Aegon to hedge 70 years of longevity risk with a 20-year instrument.  RMS also provided scenario-based modeling results to investors to allow them to gain intuition into the risk of the transaction. 

"Models make markets," said Peter Nakada, head of RMS LifeRisks. "This feels very much like the early days of the catastrophe bond market except that the potential size of the longevity market is at least five times larger than the market for natural catastrophe risk."

"RMS was pleased to work with Aegon and Societe Generale on this deal. We believe that it is a watershed deal that will pave the way for many more similar transactions in the future."

Related Resources
July 07, 2020
Covid-19 Can Be Springboard to Understanding Clash Risk: RMS CEO

June 19, 2020
The COVID Catastrophe

June 19, 2020
A Model Approach

About RMS

Risk Management Solutions, Inc. (RMS) helps insurers, financial markets, corporations, and public agencies evaluate and manage global risk from natural and man-made catastrophes, including hurricanes, earthquakes, floods, climate change, cyber, and pandemics.

RMS leads the catastrophe risk industry that we helped to pioneer by marrying data and advanced model science with leading-edge technology. Leaders across multiple industries can address the risks of tomorrow through RMS Risk Intelligence™, our open, real-time exposure and risk management platform, enabling them to tap into RMS HD models, rich data layers, intuitive applications and APIs that simply integrate into existing enterprise systems.

RMS is a trusted solutions partner enabling effective risk management for better business decision making across underwriting, risk selection, mitigation, and portfolio management.

Visit RMS.com to learn more and follow us on LinkedIn and Twitter.

Media Contacts

Matthew Longbottom

PR Lead, EU and APAC
+44 20 7444 7706 prteam@rms.com

Devonne Cusi

PR Lead, Americas
+1 551 226 1604 prteam@rms.com
cta image

Subscribe to Our Newsletter

close button
Video Title

Thank You

You’ll be contacted by an RMS specialist shortly.

RMS.com uses cookies to improve your experience and analyze site usage. Read Cookie Policy or click I understand.