Büroflächen von Banken werden zu Hotels umgewandelt

Former offices of Pfandbriefbank, NordLB are being converted into hotels due to declining office use and employee layoffs. In Unterschleißheim, Union Investment is investing €10 million to convert 3,400 sqm of unused office space into a 93-room hotel. In Hannover, NordLB is renovating a former office building into a 200-room hotel. The trend is expected to continue, with JLL predicting an increase in office conversions to hotels and residential spaces in Frankfurt.

NN Group, through its NN Life & Pensions subsidiary, has recently entered into a new longevity swap and reinsurance agreement with Prudential Financial Inc., offloading an additional $4 billion in longevity risk. This move follows a series of similar arrangements over the past decade, reflecting NN Group's strategic approach to managing pension liabilities.

NN Group's history of longevity risk transfer began in 2017 with an index-based longevity hedge transaction with Hannover Re, covering around EUR 3 billion in liabilities [1]. Subsequent deals in 2020 with Canada Life, Munich Re, and Swiss Re transferred longevity risk associated with EUR 13.5 billion of pension liabilities. In 2022, Reinsurance Group of America (RGA) provided longevity reinsurance for €4 billion of underlying reserves. Most recently, in December 2023, NN Group transferred €13 billion in longevity risk to Prudential Financial and Swiss Re [1].

The latest deal, effective July 1, 2025, involves Prudential covering approximately 96,000 policyholders with The Prudential Insurance Company of America (Prudential). This is Prudential's second deal with NN Life and represents a significant market opportunity in the Netherlands, as noted by Prudential's CEO Andrew Sullivan during their earnings call [1]. Sullivan highlighted the potential for a $300 billion longevity risk transfer market in the Netherlands, much larger than comparable markets like the UK.

NN Group's CEO, David Knibbe, attributed the recent improvement in the group's solvency ratio to this new longevity reinsurance agreement. The group's solvency ratio increased to 208% (205% pro-forma) from 194% at the end of 2024, reflecting favorable market conditions, organic capital generation, and the new reinsurance agreement [1].

Prudential's Retirement Strategies President, Dylan Tyson, and International Reinsurance Head, Rohit Mathur, expressed their commitment to the Dutch market and the strategic objectives of assisting insurers and plan trustees with customized reinsurance solutions [1]. They anticipate increased activity and demand in the Dutch market, positioning Prudential as a global leader in managing longevity risk.

NN Group's strategy of offloading longevity risk to global counterparties demonstrates a proactive approach to risk management, enhancing capital quality and positioning the group for future growth. The trend of converting former office spaces into hotels, as seen with Pfandbriefbank and NordLB, further reflects the changing dynamics of the real estate market and the need for companies to adapt to evolving market conditions.

References:
[1] https://www.artemis.bm/news/nn-group-offloads-4bn-of-longevity-risk-in-new-reinsurance-deal-with-prudential/