21 Dec 2017
Legal & General reach sixth longevity reinsurance agreement with Prudential
Legal & General Group plc (“Legal & General”) concluded their sixth longevity reinsurance agreement since 2014. The agreement signals the resurgent market for longevity reinsurance and de-risking solutions in the U.K. in 2017, with market volumes up significantly since the 2016 Brexit vote.
Legal & General Group plc (“Legal & General”) and Prudential Retirement have concluded their sixth longevity reinsurance agreement since 2014. The Prudential Retirement Insurance and Annuity Company (PRIAC) assumes longevity risk for approximately $800 million (£600 million) in pension liabilities, which are held by Legal & General as part of its bulk annuity business. The transaction covers more than 2,000 pensioners. Legal & General and Prudential have now partnered on six transactions that together reinsure nearly $8 billion in longevity risk.
The transaction is also another example of longevity reinsurance having a positive impact in enabling U.K. pension schemes to de-risk efficiently with a strong insurer such as Legal & General.
Joyeeta Kanungo, Head of New Business Reinsurance for Legal & General