February 17, 2012

Deutsche Bank closes EUR 12 billion capital market longevity solution

Deutsche Bank has completed a EUR12 billion longevity swap with AEGON, the first to be targeted directly to the capital markets and the first longevity transaction based on population data in Continental Europe. It represents a major step in helping pension funds and insurance companies provide solutions for an ageing population.

The transaction is based on Dutch population data which is applied to a synthetic portfolio and will enable AEGON to hedge the liabilities on a portion of its annuity book. By distributing the risk of the trade in the capital markets, Deutsche Bank is able to manage the longevity risk taken on through the transaction while also offering investors access to a new, diversified asset class. Use of the capital market significantly increases the capacity for hedging longevity risk that already exists in the reinsurance market.  

Clare Hennings, Head of Structured Insurance Solutions at Deutsche Bank, commented: “Deutsche Bank continues to use its extensive experience in longevity risk management to address the complexities of the economic, regulatory and market environment faced by both our clients and investors. We believe this market will continue to grow as insurance companies and pension funds look at new ways to manage their liabilities while investors seek diversified investment opportunities.”  

For further information, please call:

Deutsche Bank AG    
Press & Media Relations                            

Michelle Gathercole                                
Phone: +44 (0) 20 7545 4249        
E-Mail: michelle.gathercole@db.com        

About Deutsche Bank

Deutsche Bank is a leading global investment bank with a substantial private clients franchise. Its businesses are mutually reinforcing. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With more than 100,000 employees in 72 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions, creating lasting value for its clients, shareholders, people and the communities in which it operates.


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