Aegon and Legal & General have inked a 5-year distribution agreement that will see Aegon customers offered Legal & General individual annuities. Within the first 12 months the partnership is expected to generate approximately £190 million of individual annuities.
The Actuarial Post
has reported the distribution agreement will start in Octo
ber, and at the same time Aegon will stop writing new annuity business. Aegon sold the majority of its annuity portfolio to Rothesay Life earlier this year.
“It’s excellent news Aegon have chosen us as their annuity partner, and I look forward to providing Aegon’s customers with great value annuities and excellent customer service,” said Stephen Griffiths, Commercial Director, Individual Retirement at Legal & General.
It’s another move into the pension business for Legal & General. Earlier this month the insurer signed a £750m liabilities deal with the ICI pension fund. Speaking to The Financial Times
about the deal, Cheryl Agius, Legal & General’s head of strategic pension risk said the deal was a further step forward in the de-risking programme the ICI Pen
sion Fund Trustees is delivering for their scheme members.
Legal & General also recently purchased £2.9bn in annuity business from Aegon, suggesting the company has an appetite for bulking its business.
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