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Part of the Legal & General Group Plc family, the US term life insurer has steadily risen in US industry rankings over the last five years – moving from the seventh largest term-life provider in the United States in 2018 to number three in 2023.
4 Dec 2023
Legal & General America's individual insurance division (LGIA) today announced its best-ever single-year sales volume of $160M Annualized Premium Equivalent (APE), which represents a 39% increase in APE over 2022, continuing its impressive growth trajectory in the United States. With LGIA's year set to close on December 31, the record will continue to expand.
Mark Holweger, President and CEO, Legal & General Insurance America: “We've grown through a laser focus on protecting more American families by implementing a digital transformation strategy to reimagine the way life insurance is bought in the United States. Consumer response to this approach shines through in our results. We are proud to deliver affordable solutions that are helping to close the life insurance coverage gap and creating a brighter tomorrow for our customers and their families."
LGIA's success stems from its commitment to digital transformation. The company's industry-leading Horizon platform offers a hassle-free digital buying experience for advisors and their qualified applicants.
Since its launch in 2019, the platform has helped streamline the customer and advisor experience through a thoughtful, reflexive digital application that can be completed in as little as 15 minutes from a mobile phone. Today, through Horizon:
The record $160M APE builds on a successful track record for LGIA over the past few years, even through a global pandemic. LGIA generated $103M in 2020, $124M in 2021 and $129M in 2022.
Sir Nigel Wilson, CEO, Legal & General: "We are thrilled at the rapid growth by LGIA and its commitment to technological innovations and underwriting process advancements. With a focus on continued growth, LGIA and Legal & General Group in the UK continue to work in lockstep, leveraging shared capabilities to deliver constant digital innovation and affordable pricing, to provide a more robust solution in the US market."
Through the third quarter of 2023, LGIA's term policy counts increased by 38%, dramatically outperforming the industry's 2% increase1, with the company poised for continued growth in 2024. Additionally, LGIA's term life business is written at profitable margins, generating significant Contractual Service Margin (CSM), or store of future profits on an IFRS 17 reporting basis. Through June 2023, LGIA had generated $86M in APE (through June 2022, $62M), and accumulated a new business CSM of $131M (through June 2022, $73M) and a total balance of $1.299B CSM.
For more information on LGIA, please visit www.lgamerica.com.
References
1Third Quarter 2023 YTD LIMRA US Retail Individual Life Insurance Sales Participant Report
Established in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with £1.2 trillion in total assets under management (as at FY23) of which c40% (circa £0.5 trillion) is international.
We have a highly synergistic business model, which continues to drive strong returns. We are a leading international player in Institutional Retirement, in Retail Savings and Protection, and in both public and private markets through our Asset Management division. Across the Group, we are committed to responsible investing and dedicated to serving the long-term savings and investment needs of customers and society.
As at 7 June 2024, we estimate the Group’s Solvency II coverage ratio to be 224%.
As at 11 June 2024, Legal & General has a market capitalisation of £14.6 billion.
Legal & General America’s individual life insurance division is part of the worldwide Legal & General Group. For over 70 years, the Legal & General America companies have been in the business of providing financial protection through life insurance for American families. The Legal & General America companies are Banner Life Insurance Company and William Penn Life Insurance Company of New York. With more than $105 billion in new coverage issued in 2023, LGA is a top three US term life insurance provider with 1.4 million U.S. customers. LGA shares Legal & General’s independent financial strength ratings: A+ Superior from A.M. Best and AA- Very Strong from Standard and Poor’s and Fitch. For more information, please visit https://www.lgamerica.com.