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Legal & General’s US Pension Risk Transfer Business Nearing $2 Billion in Total Volume, Expanding Capabilities in US

Friday, June 29, 2018

Legal & General today announced impressive growth metrics for its expanding US 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 US market less than three years ago, writing nearly $2 billion in total volume spanning 28 clients.

Legal & General's US PRT business combines over 30 years of PRT expertise in the UK with its proven US investment capabilities. It has amassed a global annuity book of nearly $80 billion as of December 31, 2017, and guarantees annuity benefits to over one million annuitants. The firm has differentiated itself in the market by offering customized transaction structures, proven capabilities to price and administer complex transactions, and a nimble, client-centric service delivery platform.

Legal & General has also expanded its infrastructure investing capabilities to the US, investing in approximately $600 million to date in US deals. Infrastructure investments are typically long-dated, which are well-matched against the long-dated pension obligations that it insures. The firm expects its infrastructure investments in the US to surpass $1 billion by the end of 2018.

Nigel Wilson, Group CEO, said:
“We are very pleased with our growing success in the US 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 US market. Our growing infrastructure capabilities will support the retirement business and provide the needed capital to sustain vital infrastructure maintenance and growth in the US which in turn promotes valuable job creation and broader economic stability.”

George Palms, President, US Retirement, said:
“As a leading pension partner in the US, we set the bar for client service and a commitment to transparency. In addition, as a relatively young player in this market, we are able to bring a nimbleness and degree of innovation to our approach, which has been extremely well received by our clients.”

Kim Rosenberg, Head of Distribution & Retirement Solutions, US Retirement, said:
“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.”

Expanding PRT Business

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