Previously, Paris-based BNP Paribas SA and the European Investment Bank, the European Union's financing institution in Luxembourg, created a longevity bond in 2004. A year later they withdrew the notes, which had a maturity of 25 years, after they didn't find a buyer.

Munich Re, the world's biggest reinsurer, hasn't participated in longevity transfers "as the deals we've seen haven't met our profitability requirements," said Joachim Wenning, the management board member responsible for life reinsurance. "The future longevity trend is not easy to predict. If your assumptions are wrong, the cost is high."

Nevertheless, the Munich-based reinsurer recently became the 12th member of the Life & Longevity Markets Association.

 

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