LONDON (Alliance News) - Legal & General Group PLC on Wednesday said it has entered the European pension risk transfer market, with its first deal in Holland.
The deal means Legal & General is now writing pension risk transfer business in the UK, US and Europe.
ASR Nederland NV, a Dutch insurer, is transferring EUR200 million of pension obligations to Legal & General Re, the group's reinsurer, in cooperation with Hannover Re.
"Entry into the European pensions risk transfer market represents a significant milestone for L&G Re. Put together with the recent European Union announcement of full Solvency II equivalence for Bermuda this has been a terrific couple of weeks for L&G Re," Manfred Maske, chief executive of Legal & General Re, said.
Legal & General Re was set up in 2014 as a reinsurance hub to grow the international pension risk transfer business. This is the first deal executed through L&G Re.
"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," Kerrigan Procter, chief executive of Legal & General's retirement arm, said.
"The entry into Europe and our recent USD450 million US Royal Philips transaction show case our unique one stop solutions providing our clients; pension risk transfer expertise, asset management skills, and global reinsurance capabilities," Kerrigan added.
Shares in Legal & General Group were down 0.2% at 259.60 pence on Wednesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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