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).
The 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.
“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.