(Stamford, CT) Legal & General today announced highlights for its expanding U.S. Pension Risk Transfer ('PRT') business. The London-based financial services giant has seen continued expansion of its pension risk transfer business since it entered the U.S. market less than eighteen months ago, writing nearly $900 million in total volume spanning a diverse client base.
Legal & General Retirement America ("LGRA") completed its first U.S. transaction in October 2015, for approximately $450 million, with the U.S. subsidiary of Royal Philips. In 2016, new business also totaled approximately $450 million with six additional clients, including the Diocese of Palm Beach, The Foundation Resolution Corporation and Honolulu Museum of Art.
Legal & General's entrance into the U.S. PRT market is one that combines over thirty years of PRT expertise in the UK with its proven U.S. investment capabilities. It has amassed a global annuity book of over $68 billion as of June 30, 2016, and guarantees annuity benefits to over one million annuitants.
Nigel Wilson, Group CEO, said, "We're well on our way to surpass a milestone of over $1 billion in volume in less than two years, further emphasizing our view that the U.S. market can benefit from our extensive background and decades of experience of being a global leader in pension de-risking."
"We are very pleased with our initial successes in the U.S. 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 U.S. market," added Kerrigan Procter, CEO of Legal & General Retirement ("LGR"), and recently appointed Group Executive Director of the Company.
The Company cites its ability to offer a range of transaction structures, expanding capabilities to price complex transactions, and service delivery platform as some of the primary drivers of its early success in the U.S.
"With our expanding role as a pension partner in the U.S., we've built a deeply experienced team that is dedicated to the PRT market. In addition to our Stamford, Connecticut-based business team, we also have been able to draw upon the tremendous capabilities within our other U.S. entities for investments and administration. Our unique ability to bring a wealth of expertise and experience, combined with the nimbleness and innovation we bring as a young player in the U.S. space has been extremely well received by the market", commented George Palms, President, LGRA.
Kim Lisella Rosenberg, Head of Distribution and Retirement Solutions for LGRA, noted, "As we enter 2017, 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."