View more on these topics

L&G acquires £3bn UK annuity book from Aegon

Legal-and-General-LG-700.png

Legal & General has acquired a £3bn UK annuity portfolio from Aegon for an undisclosed sum.

The deal has been structured as a reinsurance contract initially covering around 27,000 in payment policyholders. They will remain Aegon customers and will continue to be serviced by Aegon until the business is transferred, subject to regulatory approval.

As at 31 March, L&G managed an annuity book of £45.5bn. It completed £2.4bn of bulk annuity deals last year.

L&G retirement managing director Kerrigan Procter says: “We are delighted Aegon has chosen L&G to secure its policyholders’ annuities.

“In the UK there is an estimated £100bn of individual annuities in back books and we expect further back book consolidation.”

Aegon chief executive Alex Wynaendts says: “I am very pleased we are able to announce this transaction. Achieving the divestment of our UK annuity portfolio is an important step in the strategic repositioning of our business in the UK.  The divestment enables us to fully focus on growing our platform business.

“At the same time, I am pleased we have found in L&G a good home for our annuity customers.”

Recommended

FCA interior logo 620x430
2

FCA leaves secondary annuity questions unanswered 

Plans for the second-hand annuity market unveiled today lack crucial details just a year before the reforms are due to launch. The FCA and the Treasury both published documents outlining how they expect a second-hand annuity market to function from April 2017. However, questions over the advice requirement, how providers will keep track of customer deaths […]

Money - thumbnail

FCA Retirement Income Market Data

Last week the Financial Conduct Authority (FCA) published their collected data under the above title for the period July-September 2015. It should be admitted that ordinarily such a set of figures would hold little appeal for either this article or our readers. Yet these are far from ordinary times for pension savings (and the employers that sponsor same). […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment