In 2020 life insurer Legal & General agreed over 60 bulk annuity transactions, building a total value of over £8 billion ($11bn), whilst securing the pension benefits of more than 53,000 people globally.
2020 was one of the most successful years for its US and UK Pension Risk Transfer (PRT) businesses, topping 2019 when it agreed over £11 billion ($14.6bn) of bulk annuity transactions.
The number of UK transactions agreed by Legal & General Retirement Institutional (LGRI) last year increased by more than 40% compared to 2019, making it one of LGRI’s busiest years.
Legal and General Retirement America (LGRA) also confirms that last year L&G made a 40% increase from the $1.1 billion (£0.9bn) for 2019 surpassing, $1.6 billion (£1.3bn) in premiums..
Last year it also completed a $355 million (£266m) PRT plan termination with Trinity Industries, which terminates the remainder of Trinity’s consolidated pension plan. This was the largest transaction to date for LGRA, independent of reinsurance.
Laura Mason, Chief Executive Officer, Legal & General Retirement Institutional commented: “We are immensely proud that, despite the challenges presented in 2020, our team responded by seamlessly adapting to working from home and continuing to offer reassurance and security to pension schemes and our high level of in-house, in-country, customer service for their members.
“In 2020 we agreed two global PRT transactions, our second UK APP transaction and enjoyed our best year so far for PRT in the US.
“There are positive signs for the year ahead, and we look forward to working with trustees and pension schemes around the world, providing innovative and collaborative de-risking solutions and securing the pension benefits of their members.”
George Palms, President, Legal & General Retirement America added: “Each year we’ve come to expect a busy Q4, but the volatility experienced in H1 likely pushed more transactions than usual to the back half of the year.
“Financial market volatility should continue to serve as a catalyst for plan sponsors to evaluate the pension risk remaining on their balance sheet, and with the help of intermediaries, they can also implement de-risking strategies to reduce risk. Ultimately, de-risking enables companies to focus more on their core business rather than managing pension liabilities.
“While there is still uncertainty surrounding the market for 2021, our objectives to continue to grow remain strong. We look forward to continuing to be a partner to sponsors of pension plans both in the UK and US.”