Legal & General has completed a record $2.2 billion in Pension Risk Transfer (PRT) business in the US in 2024, marking its largest year in the market to date.
Having entered the US PRT market nine years ago, Legal & General completed its first transaction with Royal Philips in 2015. Since then, the company has secured over $12 billion in new business, securing the pension benefits of over 175,000 annuitants.
Legal & General and RGA recently won InsuranceERM’s Innovation of the Year award for their split transaction solution, which successfully secured $1 billion of retirement income across two transactions in 2023.
Additionally, Legal & General has completed two significant PRT transactions in Canada in 2024, totaling CAD $0.7 billion. This includes its largest Canadian transaction to date, valued at CAD $0.5 billion, bringing its total reinsured premium in the Canadian market to over CAD $2 billion. The firm’s first Canadian PRT deal was completed in 2019 through Legal & General Reinsurance (L&G Re).
Earlier this year, Legal & General unveiled its refreshed growth strategy, emphasising a disciplined approach to profitable international growth.
The US Q3 PRT Monitor reported a strong third quarter, with $14 billion in premiums written, a 35% increase from last year. The Monitor estimates that insurers will secure over $50 billion in 2024, surpassing 2023’s total of $45.8 billion and approaching the record $51.9 billion set in 2022.
George Palms, President of Legal & General Retirement America, commented, “Legal & General’s record US business volume reflects the increased trust intermediaries, plan sponsors and fiduciaries place in us and our ability to deliver customised de-risking solutions. As the US PRT market goes from strength to strength, we continue to invest for the long term so we can consistently provide outstanding service to plan sponsors and annuitants.”
Andrew Kail, CEO of Legal & General Institutional Retirement, added, “2024 has been a milestone year for our international PRT businesses. We are delighted to have completed a record $2.2 billion of new business in the US year to date and our largest Canadian transaction on record. As the only direct writer of PRT across the UK and US, and with a growing presence in the Canadian market, these successes demonstrate continued progress against our refreshed growth strategy and exemplify our disciplined approach to profitable growth in international markets.”
Amy Ellison, CEO of Legal & General Reinsurance, said, “We are pleased to see the significant growth in the Canadian PRT market this year. Our recent transactions, including our largest ever Canadian deal valued at CAD $0.5 billion, reinforce our commitment to providing secure retirement solutions for Canadians.”
