Reinsurance News

Legal & General enters $200mn pension risk transfer deal in Canada

24th April 2019 - Author: Matt Sheehan

Legal & General Group plc has announced that it has agreed its first pension risk transfer (PRT) transaction in Canada for more than CAD $200 million (£114 million).

Legal & GeneralThe transaction is being written by Brookfield Annuity Company and Legal & General Reinsurance Company Limited, which will provide quota-share reinsurance for Canadian PRT transfers.

It represents the first PRT transaction of a new strategic partnership between the two companies, with Legal & General Reinsurance taking a meaningful quota-share of the total buy-in liabilities written by Brookfield Annuity Company.

Legal & General sees opportunity in the fast-growing Canadian PRT market, which has more than doubled in size over the last five years to reach sales of CAD $4.6 billion (£2.6 billion) in 2018.

The re/insurer has now written £2.5 billion in international PRT since its first transaction in 2015, and its U.S PRT business has written USD $2.7 billion across 45 transactions.

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“I am delighted to announce our first PRT transaction in Canada, where the market is growing strongly,” said Nigel Wilson, CEO of Legal & General. “The transaction provides further evidence of our appetite and capability to grow our PRT business internationally.”

Thomas Olunloyo, CEO of Legal & General Reinsurance also commented: “We are excited by the opportunity to provide reinsurance into the Canadian pension risk transfer market.”

“We look forward to working with Brookfield Annuity Company who are a rapidly growing specialist provider of pension de-risking products,” he continued.

Additionally, Paul Forestell, CEO of Brookfield Annuity Company, stated: “We are pleased to partner with Legal & General Reinsurance and bring our capabilites to this transaction.”

“Our partnership with Legal & General offers additional capacity for a rapidly expanding Canadian market,” Forestell added.

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