Reinsurance News

L&G reports “strong year” for pension deals

9th March 2022 - Author: Matt Sheehan

Life insurer Legal & General Group (L&G) has reported its results for 2021, with subsidiaries Legal & General Retirement Institutional (LGRI) and Legal & General Retirement America (LGRA) experiencing a “strong year,” the company says.

Legal_&_GeneralL&G continued to maintain its position in the global pension risk transfer (PRT) market, securing a total of £7.2 billion in new premiums across 57 transactions globally.

Over the course of last year, L&G’s UK PRT business, LGRI, completed 45 transactions worth £6.2 billion, including two PRT transactions worth £800 million with the TUI Group UK Pension Trust in June.

The unit also finalised a £760 million buy-in with the Sanofi Pensions Scheme and a £310 million buy-in with the Reuters Supplementary Pension Scheme.

Of these transactions, some 58% were with existing LGIM clients and the business now has 11 umbrella agreements now in place with different schemes, and around £1 billion worth of deals already won in 2022.

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Meanwhile, US PRT new business premiums written by LGRA were worth $1.1 billion (£789 million) across 11 transactions in 2021, with the business surpassing the milestone of servicing 100,000 annuitants. Since entering the US market in 2015, Legal & General has underwritten more than $6bn of premiums.

“During 2021, we have delivered strong financial results, while continuing to support trustees, sponsors and their schemes, together with their tens of thousands of members, in securing their future pensions,” said Andrew Kail, Chief Executive Officer at LGRI.

“We have adapted and improved our global offering, working to build on the strengths of the Legal & General group businesses, helping to support more small and medium sized pension schemes, and breaking new ground in how we invest these assets to solve society’s greatest needs and support Legal & General’s objectives of ‘inclusive capitalism’.”

“Throughout 2021, we have innovated and created tailored solutions to match trustees’ needs. 2022 is already predicted to see high volumes in both the UK and US markets as more schemes move closer to full buyout funding, and I look forward to continued success across our key businesses.”

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