Our Objectives

The launch of the LLMA brings together a number of significant market forces, and this reflects the extremely wide ramifications of what we are trying to do.

We believe that the LLMA's work will bring benefits to insurers and reinsurers by bringing structure to an embryonic marketplace, and capital markets investors through the growth of a new and uncorrelated asset class.

Such a marketplace would permit new and flexible solutions to those with longevity and mortality exposures. It will also allow pension funds (and others with significant financial risk from longevity) to secure their members' benefits for the long term, helping to develop much-needed stability in retirement systems.

To date almost all longevity capacity has been provided by the insurance and reinsurance markets. However, given the vast size of global pension liabilities, it is clear that there is insufficient capacity in these markets to absorb a substantial portion of this risk.

It is our belief that the capital markets will have an appetite for assets like these that are not correlated with their other investments, and hence we have set up the LLMA to facilitate the evolution of the market.