In a statement, the UK-based insurer said it had entered into an “exclusive partnership arrangement with New Ireland Assurance to reinsure €136m ($178m, £114.6m)” of the company’s existing annuity business, as well as a proportion of its future business.
“The completion of a first annuity transaction outside of the UK demonstrates Legal & General’s ability to expand into attractive markets,” L&G added.
It noted that the company had earmarked “retirement solutions both in the UK and abroad” as one of five key drivers for growing its business.
To this end, L&G is "actively pursuing opportunities to leverage its expertise in non-UK markets, such as North America and Europe", according to Kerrigan Procter, managing director of L&G’s annuity business.
"The Irish annuity market for both bulk and individual annuities looks set to expand over the next few years, and this arrangement will enable Legal & General to actively participate in this exciting market," he added.
Market access
Under the arrangement, L&G takes on the responsibility of paying out on existing annuity arrangements that had been the responsibility of New Ireland, in exchange for gaining a foothold in the Irish market.
The deal covers annuities purchased by individual customers as well as bulk annuities purchased by Irish pension schemes, L&G said.
Proctor said that two multi-billion dollar buyouts in the US in 2012 were an indication that pension scheme de-risking "is seen globally as a risk worth actively managing".
"We expect the interest in insurance based de-risking solutions to continue to be strong, with potential for futher international growth," he added.
