L&G reports record growth in UK and US pensions business

Added 27th September 2016

UK insurer Legal & General (L&G) said its retirement unit is on track to double its new business sales in 2016, reporting sales of £5.4bn (€6.2bn, $6.9bn) on Tuesday.

L&G reports record growth in UK and US pensions business

The insurance behemoth said its retirement business is experiencing record growth unhindered by wider industry concerns over the introduction of Solvency II in 2016, the uncertainty around Brexit, and what it calls ‘lower for longer’ interest rates.

According to latest figures, L&G’s UK and US unit reported over £400m in bulk annuity business in September alone.

The company also reported strong sales in lifetime mortgages, which L&G only began offering last year, with expected sales likely to exceed £500m in 2016.

In July, L&G signed 5-year distribution agreements with Santander for lifetime mortgages, and Aegon for individual annuities.

Since 30 June, L&G Retirement sales have topped £1.4bn, comprising of £1.2bn for pension de-risking, £130m of lifetime mortgages, and £90m of individual annuities.

US assets

L&G said it has started to invest in “US infrastructure assets” to supporting its growing US pensions de-risking business.

“Infrastructure investment forms a key part of our annuity portfolio investment strategy,” said the company. £6.2bn of the annuity portfolio is currently invested in infrastructure assets, of which almost £1bn has been invested this year,” confirmed the company.

However, Kerrigan Procter, managing director of Legal & General Retirement, said the company still need to manage its defined benefit pension plans.

“Legal & General Retirement is on track to double new business sales in 2016. Companies still need to manage their defined benefit pension plans, and people still want to achieve financial security in retirement, regardless of the uncertain political, regulatory or economic backdrop.

“Legal & General entered the lifetime mortgage market last year, and the business has grown rapidly. Customers want more choice in how they fund their retirement, and accessing wealth that is tied up in their home is an attractive solution for asset rich retirees.

Procter added that he expects lifetime mortgages to be “even more popular” with customers in 2017.

Visitor's Comments Add your comment

Add Your Comment

We won't publish your address

About Author

Monira Matin

Senior Reporter

Monira joined International Adviser in March 2016 from Informa Global Markets where she worked as a eurobond reporter for over two years, covering fixed income markets. She has previously held a number of editorial positions covering politics, insurance and technology. Monira has a degree in Journalism and Economics from City University.


The turning tide of global equities

The turning tide of global equities

Despite a gloomy beginning to the year, global equities have started to outshine the backdrop of economic malaise that threatened their upward trajectory, with the index delivering 19.2%


Ashburton International
Ashburton International

Ashburton Investments is a new generation investment...



Offshore Bond Workshop Glasgow 2016
Offshore Bond Workshop Glasgow 2016

22nd November 2016
The Grand Central Hotel, Glasgow

Future Advisory Forum Dubai 2016
Future Advisory Forum Dubai 2016

23rd November 2016
Shangri-La Hotel, Dubai 

Sponsored Content

Investment Strategy