MGM Advantage completes longevity swap with Pacific Life Re

24-03-2009

23 June, 2009: MGM Advantage, the retirement income specialist, is pleased to announce the completion of a longevity reinsurance transaction with Pacific Life Re.  The transaction involves a portfolio of in-payment annuities with underlying liabilities of £220* million.

Ken Hogg, Interim Finance Director at MGM Advantage, comments, “As a mutual, bringing value for our members is at the heart of everything we do and the longevity swap fundamentally strengthens MGM Advantage’s capital position and means we are releasing capital that can be directed towards business growth.”

David Howell, Chief Executive of Pacific Life Re commented, “This transaction highlights the valuable role reinsurance can play in helping insurers to manage efficiently the risk and capital associated with their annuity business.  The Pacific Life Re team is pleased to have worked with MGM Advantage to structure the swap and reach this agreement in a short timeframe.”

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NOTES TO EDITORS:

For further information
Citigate Dewe Rogerson
Jo Skinner             020 7282 1092
Jonathan Henderson        020 7282 1057


Andy McAleese
Head of Annuity Transactions
Pacific Life Re
Tel: +44 (0)20 7709 1812
E-mail: andy.mcaleese@ pacificlifere.com

About MGM Advantage
www.mgmadvantage.com

History:  Based in Sussex, the life assurer opened its doors in 1852 as Marine and General Mutual Life Assurance Society, to fill the poorly-met insurance needs of seafarers and traders.

MGM Advantage is a new name in the UK retirement income market. Formerly known as MGM Assurance, the company rebranded as MGM Advantage, Designs for Retirement in June 2008 and repositioned the company as a retirement income specialist.

Its launch product – an Enhanced Annuity – is designed to provide additional income in retirement for people with any health conditions or a poor medical history and is distributed through independent financial advisers (IFAs) across the UK.

MGM Advantage is a mutual society owned by its members, and manages assets in excess of £1.4 billion. MGM Advantage’s commitment to customer satisfaction is backed up by an industry-leading customer charter, which promises high quality service and a £25 no-quibble payment to any customer who feels they haven’t receive the level of service they expected.
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MGM Advantage Designs for Retirement, MGM Advantage and the MGM Assurance logos are Trade Marks of Marine and General Mutual Life Assurance Society.

About Pacific Life Re Limited

Pacific Life Re is a wholly-owned subsidiary of Pacific LifeCorp. It is a UK-based specialist life reinsurer offering a comprehensive range of reinsurance solutions aimed at helping insurance providers to manage mortality, morbidity, annuity and longevity risk in the UK, Ireland and Asia.

* Figure correct as at 31 March 09.