Business offering.

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Legal & General Re offers annuity and longevity reinsurance that supports effective risk management and capital optimisation.

Annuity reinsurance

In exchange for a single premium at the outset of the contract, the cedent transfers all its obligations in respect of a predefined block of annuities to Legal & General Re. This solution addresses both longevity risk as well as asset performance risk for the investments backing the liabilities.

Longevity swap contract

Longevity insurance provides protection for a pension scheme against the risk that members live longer than expected.  As such, it gives certainty to the trustees and sponsoring employer on the length of time they will be required to make benefit payments to members. Whilst longevity risk is one of the main risks faced by a scheme, this type of insurance does not cover other risks such as inflation risk and interest rate risk.

With this solution, Legal & General Re exchanges a series of cashflows with the cedent in respect of a predefined block of annuities. Legal & General Re will make payments to the cedent that reflect actual payments due to its policyholders in exchange for fixed cashflows agreed at the outset.  The cedent therefore transfers the risk arising from the uncertain longevity of its policyholders to Legal & General Re in exchange for a fixed obligation. 

Legal & General SAC

Legal & General SAC, wholly owned subsidiary of Legal and General Re, offers a low cost commercial structure to allow pension risk transfer effectively and efficiently between Pension Schemes and third party reinsurance counterparties. The offering is a unique, ring fenced, pass through structure that retains no insurance risk, but facilitates a Defined Benefit Pension Scheme dealing directly with reinsurers. The offering is governed by the Segregated Accounts Companies Act 2000 in Bermuda.