Legal & General (L&G) has entered the European pension risk transfer market, with an initial deal in Holland.
Dutch insurer ASR Nederland NV is transferring €200 million of pension obligations to Legal & General Re, the firm’s global reinsurance arm, in cooperation with Hannover Re.
Kerrigan Procter, managing director of Legal & General Retirement, says the pension risk transfer business has become a global business for Legal & General.
“The potential market for pension risk transfer in the US, UK, and Europe is huge, and will play out over many decades,” he says.
As well as entering the European market, Legal & General’s US arm recently entered into an agreement with US Royal Philips to provide retirement payments under a group annuity contract to about 14,000 retirees.
Legal & General Re was established in 2014 as a reinsurance hub to grow the firm’s international pension risk transfer business.
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