Legal & General announces first Canadian Pension Risk Transfer transaction

Legal & General Group plc (“Legal & General”) announces that it has agreed its first Pension Risk Transfer (PRT) transaction in Canada for more than CAD $200 million (£114 million). The Canadian PRT market is an attractive and fast-growing market, which has more than doubled in size over the last five years to reach sales in 2018 of CAD $4.6 billion (£2.6 billion).

The transaction is being written by Brookfield Annuity Company and Legal & General Reinsurance Company Limited (“Legal & General Reinsurance”) who have recently entered into a strategic partnership under which Legal & General Reinsurance will provide quota-share reinsurance for Canadian PRT transfers. This is the first PRT transaction for the strategic partnership, with Legal & General Reinsurance taking a meaningful quota-share of the total buy-in liabilities written by Brookfield Annuity Company.

Including this transaction, Legal & General has now written £2.5 billion in International PRT since its first transaction in 2015. Central to Legal & General’s international strategy is the US PRT business, which has written USD $2.7 billion in premiums across 45 transactions. Legal & General offers a full suite of solutions in the US PRT market for a range of transaction sizes, including buy-ins, buyouts and deferred lives.