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Pension risk transfer activity bolsters L&G profits for 2020

11th March 2021 - Author: Charlie Wood

Life insurer Legal & General group saw its Legal & General Retirement Institutional arm write £7.6 billion of premiums across 44 transactions in 2020, compared to the £10.3 billion it achieved in 28 deals during 2019.

Legal_&_GeneralMeanwhile, US Pension Risk Transfer new business premiums increased 42% to a record $1.6 billion, as the company saw market share jump to 7%.

Since entering the US market in 2015, Legal & General has underwritten more than $5 billion of premiums.

LGRI also secured its first global PRT transaction last year, with the business simultaneously insuring IHS Markit’s UK and US pension plans for £122 million.

Concurrently, L&G completed its largest US PRT transaction independent of reinsurance, to date, at more than $350 million.

RMS

“Despite the challenges presented in 2020, it was another strong year for LGRI, with Pension Risk Transfer playing an important role in driving Legal & General Group’s performance,” said Laura Mason, Chief Executive Officer of LGRI.

“As the only company operating across the full pension de-risking journey, we have set bold targets, anticipating transacting £40bn to £50bn in the UK PRT market over the next five years and growing our international footprint by writing more than $10bn of international PRT over the next five years.

“We look forward to our continued working with trustees and pension schemes internationally to offer reassurance and security for pension scheme members by providing our unique de-risking solutions, while contributing to the UK’s economy through our investments in infrastructure, homes and communities.”

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