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April 08, 2020 at 01:43 PM
At least some big life insures may be eager to sell the big group annuities used in the pension risk transfer business.
Legal & General Group PLC and Global Atlantic Financial Group Ltd. have both put out signals that they’re still hungry for pension risk transfer deals.
(Related: Athene Has Big Fish on the Line: Earnings)
Legal & General reported last week that it completed eight pension risk transfer deals in March.
The eight deals involved pension plans in both the United Kingdom and in the United States, and they involved about $324 million in pension benefits obligations.
Legal & General noted that the members of its pension risk transfer team are working from home, as a result of the COVID-19 control efforts, but that the members of that team can still price, negotiate and sign pension risk transfer deals.
George Palms, president of the company’s Legal & General Retirement America, said in a comment on current conditions that the company has worked hard to maintain pension risk transfer service levels.
“The PRT market in the U.S. continues to be active, and we look forward to continuing helping plans de-risk over the year ahead,” Palms said.
In separate news, Global Atlantic announced today that it has obtained $1 billion in extra capital, from the new Ivy Co-Investment Vehicle LLC.
“Global Atlantic and Ivy will co-invest in new qualifying reinsurance opportunities sourced by Global Atlantic’s institutional reinsurance business,” Global Atlantic said. “These transactions include both reinsurance of life and annuity blocks and reinsurance of pension risk transfer transactions.”
Global Atlantic reported that it has reinsured a total of $30 billion in reserves in connection with life insurance blocks, annuity blocks and pension risk transfer arrangements.
