Legal & General Retirement America (LGRA) has exceeded $1.6 billion in pension risk transfer deals transacted this year, resulting in year-over-year growth of more than 40% from 2019 to 2020.
LGRA completed 17 transactions in total over the last 12 months with seven deals occurring in Q4 alone. These deals have resulted in secured coverage for over 26,000 participants.
In addition, LGRA completed its largest transaction to date independent of reinsurance, totalling over $350 million.
Since 2015, LGRA has written over $5 billion in total US volume (2015: $445 million; 2016: $448 million; 2017: $713 million; 2018: $844 million; 2019: $1,140 million; 2020: $1,615 million), and is poised for continued success in 2021.
George Palms, president of LGRA said: “Despite the challenging environment brought on by the global pandemic, I’m thrilled with the continued progress we’ve made in 2020. The resiliency seen across the market serves as validation that PRT remains important to plan sponsors.
“With a total addressable market in excess of $3 trillion, we believe the prospects for continued growth are strong, and we look forward to continuing to assist companies in ensuring they can honour the financial commitments they made to their employees.”
Laura Mason, CEO of Legal & General Retirement Institutional commented: “We’re very pleased with the successful way our US PRT business has met the challenging environment presented this year, while surpassing the total premium written in 2019. During a time when so much is uncertain, LGRA has continued to remain steady in helping annuitants have a financially secure retirement.
“The volume of transactions we have completed in 2020 demonstrates Legal & General’s role as a global leader in PRT and, as we transition into 2021, further strengthens our belief that de-risking and securing pension plans remains important for plan sponsors and plan members.”
This announcement comes after LGRA experienced its strongest third quarter on record, having completed six transactions exceeding $628 million and securing coverage for over 8,500 participants.