Legal & General Retirement America (LGRA), a provider of pension risk solutions across the United States, has reached the milestone of $10 billion in total written premium and over 100 deals since its inception in 2015.
The company has secured roughly $5 billion within just the past three years.
Year-to-date, LGRA has completed $1.7 billion in transactions securing the retirement for over 27,000 annuitants.
The organisation’s new business volume is said to have mostly been driven by a nearly $0.8 billion transaction, which marks as the provider’s largest deal to date.
Moreover, looking at Legal & General (L&G), the company has written $7.5 billion of pension risk transfer (PRT) in the US and Canada from 2020 through 2023.
What is very clear, is that a significant opportunity remains within these markets, and L&G remains well-positioned to continue to execute where commercial conditions support.
In the US, total PRT market volume is expected to reach an estimated $46 billion in 2023, the second largest year on record.
Moving towards the UK, activity in the PRT market also remains strong, with total PRT volumes estimated to reach around £50 billion for 2023.
If you recall, L&G’s UK PRT division recently announced a £4.8 billion full buy-in with the Boots Pension Scheme.
The buy-in secured the benefits of all 53,000 annuitants of the Scheme, making it the UK’s largest single transaction of its kind by premium size and, for L&G, the largest single transaction by number of members.
These successes have heavily contributed towards L&G posting a record year with £13.6 billion of global PRT written to date.
George Palms, President, Legal & General Retirement America, commented: “In a short amount of time, LGRA has exhibited tremendous growth to become one of the United States’ top PRT providers, having four repeat clients this year alone. We continue to see high demand in the growing US PRT market as companies look to work with a trusted partner to effectively manage their pension obligations while also providing a secure retirement for their employees. We’re honored to fill that role and work with our clients to ensure the financial security of more than 160,000 annuitants in total.”
Andrew Kail, Chief Executive Officer, Legal & General Retirement Institutional, said: “We are excited to have reached the $10 billion milestone in the US, underscoring the strength of our global PRT business. Our growing success in North America – including a recent CAD$350 million transaction in Canada – is a strong indication that we can build competitive propositions for clients across markets and contexts.
“This has been a record-breaking year for Legal & General with £13.6 billion in global PRT written to date, building on the achievements of prior years. Since the beginning of 2018, we have written a total of £59.7 billion of global PRT. We again experienced zero credit defaults in 2023, as was the case from 2010 to 2022. We look forward to continuing to support pension schemes worldwide, securing and protecting member’s benefits.”
