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Success Story

Teamwork pays off in divesting onerous life and annuity liabilities

Insurance Consulting and Technology|Reinsurance
Insurer Solutions

December 23, 2019

Willis Towers Watson drew on the combined capabilities of our Insurance Consulting and Technology business and Willis Re to offer a solution to undertake the actuarial appraisal and reinsurance transaction for the US life subsidiary of a large multinational.

The Client Challenge

The U.S. life subsidiary of a large multinational was seeking to divest the balance sheet liabilities associated with its books of fixed annuity, variable annuity and structured settlement lines of business. To do so effectively, it required a full actuarial appraisal and a sale advisor that could help it achieve its financial goals for the transaction.


Our Solution

Willis Towers Watson drew on the combined capabilities of our Insurance Consulting and Technology business and Willis Re to offer a solution to undertake the actuarial appraisal and reinsurance transaction. The actuarial appraisal of the targeted business segments, which also took advantage of in-depth knowledge relating to the proposed transaction, developed independent models of the fixed annuities, variable annuities and structured settlement lines of business for sharing with prospective buyers. The reinsurance transaction process, led by a specialist life reinsurance solutions team, included vetting potential buyers, soliciting market interest, developing the Request for Proposal package and summarizing and evaluating offers.


The Outcome

Due to Willis Towers Watson’s breadth of industry exposure, we were able to arrive at an expanded list of potential buyers, ultimately creating a more competitive process and advantageous sale price. The transaction was successfully completed and the client commended the ‘joined up’ approach between our business units that resulted in streamlined data gathering and widespread time, cost and knowledge sharing efficiencies.

Our integrated approach has proven to be attractive to other companies seeking similar solutions, with Willis Re acting as broker and Insurance Consulting and Technology performing the actuarial appraisal. We have since replicated this approach several times, with similar success in each instance.

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