Legal & General has announced that its Pension Risk Transfer (PRT) business has experienced continued growth since the company entered the U.S market less than three years ago, having written nearly $2 billion in total volume across 28 clients.
The business has also amassed a global annuity book of nearly $80 billion, and guarantees annuity benefits to more than one million annuitants.
Combining Legal & General’s PRT expertise in the UK and its U.S investment capabilities, the firm offers customised transaction structures, a client-centric service delivery platform, and the ability to price and administer complex transactions.
The company also said it has made approximately $600 million of infrastructure investments to date in U.S deals, and it expects this figure to surpass $1 billion by the end of 2018.
Legal & General explained that because infrastructure investments are typically long-dated, they are well-matched against the long-dated pension obligations that the company insures.
Nigel Wilson, Chief Executive Officer (CEO) of Legal & General Group, said: “We are very pleased with our growing success in the US and see great opportunity over the next several decades. We will continue to invest heavily in our international expansion and intend to be a major player as we steadily grow our position in the US market.
“Our growing infrastructure capabilities will support the retirement business and provide the needed capital to sustain vital infrastructure maintenance and growth in the US which in turn promotes valuable job creation and broader economic stability.”
George Palms, President, US Retirement, also commented: “As a leading pension partner in the US, we set the bar for client service and a commitment to transparency. In addition, as a relatively young player in this market, we are able to bring a nimbleness and degree of innovation to our approach, which has been extremely well received by our clients.”
Kim Rosenberg, Head of Distribution & Retirement Solutions, US Retirement, added: “Demand continues to build for insurers that are flexible and highly responsive to dynamic client needs. We fully intend to be on the forefront of this rapidly evolving market and continue to emphasize our highly collaborative approach with clients.”