PRIAC selected to provide longevity reinsurance to Legal & General for a portion of its bulk annuity portfolio.
27 October 2014
NEWARK, NJ and LONDON, ENGLAND. – October 27, 2014 – Prudential Retirement Insurance and Annuity Company (PRIAC), a Prudential Financial, Inc. (PFI) company (NYSE:PRU) has announced that it will provide reinsurance to UK based insurer
Legal & General Group plc. Under the terms of the agreement, PRIAC will provide reinsurance of longevity risk for a portion of Legal & General’s pension bulk annuity business, which provides security to thousands of UK retirees.
Legal & General holds £24.6 billion ($39 billion) in bulk annuity assets as of June 30, 2014 and has completed £3.1 billion ($4.9 billion) in new transactions in the half year to June 30, 2014. PRIAC is providing longevity reinsurance on approximately £1.35 billion ($ 2.2 billion) of Legal & General’s bulk annuity portfolio.
“This transaction represents another milestone for the longevity reinsurance market and we’re pleased that Legal & General has chosen to partner with PRIAC for this arrangement,” said Bill McCloskey, vice president, longevity reinsurance. “This collaboration underscores our proven ability to tailor reinsurance solutions for the largest and most sophisticated pension insurers in the world.”
Tom Ground, Head of Bulk Annuities and Longevity Insurance at Legal & General, said; “Legal & General is pleased to be able to tap into PRIAC’s longevity reinsurance capacity to support the growth of our market-leading pension risk transfer business in the UK.”
PFI has completed the largest known pension and longevity risk transfer transactions in the UK and North America, having completed the General Motors, Verizon and BTPS transactions and recently entering into agreements with Motorola and Bristol-Myers Squibb to settle pension liabilities.
Notes to editors
Reinsurance contracts are issued by PRIAC, Hartford, CT 06103, a wholly owned subsidiary of PFI. PRIAC is solely responsible for its financial condition and contractual obligations. Neither PRIAC nor PFI are authorized or regulated by the U.K. Prudential Regulation Authority or regulated by the Financial Conduct Authority, nor do they offer insurance or reinsurance in the United Kingdom. PRIAC does provide off-shore reinsurance to companies that have acquired U.K. pension risks through transactions with U.K. plan sponsors.
PFI of the United States is not affiliated with Prudential plc, which is headquartered in the United Kingdom.
PFI (NYSE:PRU), a financial services leader with more than $1.1 trillion of assets under management as of June 30, 2014, has operations in the United States, Asia, Europe, and Latin America. PFl’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., PFI’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit www.news.prudential.com.
About Legal & General
Legal & General is one of the UK's leading financial services companies and one of the UK's top 50 companies in the FTSE 100 Index. Legal & General has been an active participant in the insurance solution pension de-risking market for nearly 30 years.
Legal & General Retirement insures one million customers, including deferred pensioners who rely on us for their future pension arrangements and the pensioners whose financial security we support by protecting their pension schemes against longevity risk.
Legal & General offers a range of de-risking solutions, which includes buyout, buy-in, longevity insurance and liability-driven investment (LDI), to pension schemes of all sizes. Legal & General is also able to tailor a combination of LDI and longevity insurance to provide “DIY buy-in” solutions. Legal & General has expertise in investment management, all aspects of defined benefit provision as well as an in-depth understanding of mortality trends and longevity risk.
For more information please contact:
t: +44 (0) 1737 375369
m: +44 (0) 7788 926790