Artex Creates Iccaria: A New Facility For Pension Longevity Swaps

Feb 12, 2015

12 February 2015


Artex Risk Solutions (‘Artex’) has created a new facility to allow pension funds the opportunity to transfer their longevity risk cost effectively and directly to the reinsurance market. Iccaria is a Guernsey domiciled Incorporated Cell Company (‘ICC’), developed in conjunction with PwC, which not only offers pension funds the benefit of cost-effective risk transfer but also a flexible structure which enables pension funds to select the service providers they wish to use to administer the arrangements.

It is anticipated that pension schemes with liabilities as low as £250m will now be able to benefit by using the Iccaria facility, whereas previously the market was unable to offer well-priced solutions for funds of this size.

Artex selected Guernsey as the domicile in which to establish Iccaria because of its excellent reputation and world-class regulatory regime, essential for capital efficiency. Paul Eaton, New Business Director for Artex, said: “This is an exciting time for Artex and the captive industry as we move into an era where we are able to help pension fund clients hedge their longevity risk on a cost effective basis. For many years the captive industry has been providing clients with alternative risk transfer facilities, and this is another example of innovation being used to develop a bespoke solution to meet market demand. Working as the insurance manager on the industry’s first pension longevity transaction to use a captive, whilst helping BT Pension Scheme establish its ICC in 2014, Artex is ideally positioned to support Iccaria. We are aware of the substantial market interest in this area and we are delighted to be working alongside PwC to offer a market-leading facility.”


For further information, please contact:
Paul Eaton, New Business Director, Artex Risk Solutions (Guernsey) Ltd
+ 44 (0) 1481 737405 

Notes to Editors:
Artex Risk Solutions

Artex Risk Solutions (Artex) provides a diverse range of captive insurance solutions and alternative risk financing options.

Artex has specialist staff operating from 15 office locations throughout North America, Europe, Bermuda and the Caribbean, managing captive programs for over 1,000 customers in 22 of the world’s most popular onshore and offshore domiciles. With 18 different industry-specific and heterogeneous programs, Artex is one of the largest specialty program managers in the industry. More than 2,000 public, private and non-profit entities participate in Artex’s various programs — in total, managing or placing more than $1 billion in insurance premium.

Artex is a wholly owned subsidiary of Arthur J. Gallagher & Co. (NYSE: AJG) — one of the world’s largest insurance brokerage and risk management services firms. Arthur J. Gallagher is headquartered in Itasca, Illinois, has operations in 25 countries and offers client service capabilities in more than 140 countries around the world through a network of correspondent brokers and consultants.