February 23, 2017 – Stamford, CT - Legal & General today announced highlights for its expanding US Pension Risk Transfer (‘PRT’) business.
9 Mar 2017
The London-based financial services giant has seen continued expansion of its pension risk transfer business since it entered the US 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 US transaction in October 2015, for approximately $450 million, with the US subsidiary of Royal Philips. In 2016, new business also totalled 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 US PRT market is one that combines over thirty years of PRT expertise in the UK with its proven US 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 US 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 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,” 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 US.
“With our expanding role as a pension partner in the US, 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 US 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 US 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.”
This announcement may contain certain forward-looking statements relating to Legal & General, its plans and its current goals and expectations relating to future financial condition, performance and results. By their nature, forward-looking statements involve uncertainty because they relate to future events and circumstances which are beyond Legal & General’s control, including, among others, UK domestic and global economic and business conditions, market related risks such as fluctuations in interest rates and exchange rates, the policies and actions of regulatory and Governmental authorities, the impact of competition, the timing impact of these events and other uncertainties of future acquisition or combinations within relevant industries. As a result, Legal & General’s actual future condition, performance and results may differ materially from the plans, goals and expectations set out in these forward-looking statements and persons reading this announcement should not place reliance on forward-looking statements. These forward-looking statements are made only as at the date on which such statements are made and Legal & General Group Plc does not undertake to update forward-looking statements contained in this announcement or any other forward-looking statement it may make. Legal & General America retirement products are issued and administered by Banner Life Insurance Company located in Urbana, MD. Banner products are available in 49 states and the District of Columbia and are not available in New York. #17-019.
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which 39% is international. We have a unique and highly synergistic business model, which continues to drive strong returns. Legal & General provides powerful asset origination and management capabilities directly to clients, which also underpin our leading retirement and protection solutions. We are a leading international player in Pension Risk Transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Our purpose is to improve the lives of our customers and create value for our shareholders. Through inclusive capitalism, we are investing in long-term assets, such as real estate and infrastructure, that can help build a better society for the future.
LGIA is one of the nation’s strongest life insurers, and number three in term life insurance sales in the United States (LIMRA Q2 2023 report). LGA’s insurance products are sold nationwide through its companies Banner Life Insurance Company in 49 states and D.C. and William Penn Life Insurance Company of New York in New York. LGA has an A.M. Best rating of A+ (Superior) – 2nd highest out of 15 categories and AA- from Standard & Poor’s (Very Strong capacity to meet financial commitments). Ratings are as of November 3, 2022, and apply to Legal & General America Group and its subsidiaries Banner Life Insurance Company and William Penn Life Insurance Company of New York. All ratings are subject to change.
*as at December 2023