Legal & General expands US pension risk transfer business
Legal & General is pleased to announce it has entered into its second US pension risk transfer deal with a buy-out of approx. $65m in pension liabilities, and will begin making payments to annuitants in the coming months.
Legal & General has internationalised its pension risk transfer business with hubs operating in the UK, US and in Europe. Demand for de-risking solutions remains high and we retain a strong pipeline.
Kerrigan Procter, Managing Director of Legal & General Retirement (photo) said: ”This deal is an excellent start to the year and follows our successful entry into the US in October 2015 with our $450m agreement with the US subsidiary of Royal Philips. The US is a key market for Legal & General and we are uniquely positioned with our US life assurance business, rapidly growing investment management business, and US pension risk transfer operations. I am confident we will build on the global success of last year in 2016.”
Legal & General Retirement America engaged a top international consulting firm to review its annuitant payment administration functions and provide sample pension plan information to assess the quality and effectiveness of its systems and client service delivery in 2015. Their report is available to plan sponsors and intermediaries looking to conduct due diligence.
George Palms, President, Legal & General Retirement America added: “This is another important milestone in our US pension risk transfer business. Our administrative and service platform is not only extremely efficient but it also delivers a positive client experience for annuitants. We are excited to leverage it for our latest client win. Demand for pension risk transfer deals is only just beginning in the US and we are confident that we are well positioned to be a major player in this developing market.”
Legal & General Retirement America will look after all the administration of the scheme and payments to the annuitants going forward. Legal & General America’s Banner Life Insurance Company will be the entity issuing the group annuity contract and Legal & General Investment Management America will manage the assets.
Legal & General has the ability to provide a complete range of pension de-risking solutions to its US clients combining nearly thirty years of bulk annuity and PRT expertise in the UK with its proven US investment capabilities. It has amassed a global annuity book of over $68 billion as of June 30, 2015 and guarantees annuity benefits to over a million annuitants.
For more information please contact:
Head of Group Corporate Communications
(or Kim Lisella, Legal & General Retirement America, Tel: +1 203 359 5793)
Notes to editors:
Legal & General Group Plc
Established in 1836, Legal & General is a leading provider of insurance, savings and investment management products in the UK. The Group has a market capitalisation of £14.9bn as at 31 December 2015 and is responsible for investing £728bn worldwide (as at 30 September 2015) on behalf of investors, policyholders and shareholders. We have over seven million customers in the UK for life assurance, pensions, investments and general insurance plans and over one million customers in the US who rely on us for life assurance. In 2014, Legal & General's operating profit (on the IFRS basis) was £1,275m and earnings per share were 16.70p for the period, an increase of 10% for both respectively.
For more information on Legal & General, please see http://www.legalandgeneralgroup.com/
Legal & General America
For over 65 years, the Legal & General America companies have been in the business of providing financial protection through life insurance for American families. The Legal & General America companies are Banner Life Insurance Company and its subsidiary William Penn Life Insurance Company of New York. With more than $73 billion in new coverage issued in 2014, LGA ranked fifth in the U.S. and ended 2014 with in excess of $634 billion of coverage in force with nearly 1.2 million U.S. customers. LGA shares Legal & General's independent financial strength ratings: A+ Superior from A. M. Best and AA- Very Strong from Standard and Poor's and Fitch. Gene R. Gilbertson serves as the President and Chief Executive Officer of LGA.
Legal & General Investment Management America
Legal & General Investment Management America, Inc. (LGIMA) is a Chicago-based registered investment advisor specializing in index, active fixed income and liability driven investment (LDI) strategies for the US institutional market. LGIMA was founded in 2006 as a wholly-owned subsidiary of Legal & General Investment Management (Holdings) Ltd. (LGIM(H)), which also owns its affiliates Legal & General Investment Management Ltd. and LGIM International Ltd. In May 2014, LGIMA became a wholly owned subsidiary of Legal & General Investment Management US (Holdings) (LGIMUS(H)) which is wholly owned by LGIM(H).