Repositioning for Edinburgh insurer
Legal & General buys £3bn Aegon annuities
Alex Wynaendts, group chief executive of Aegon, said: “Achieving the divestment of our UK annuity portfolio is an important step in the strategic repositioning of our business in the United Kingdom.
“The divestment enables us to fully focus on growing our platform business. At the same time, I am pleased that we have found in Legal & General a good home for our annuity customers.”
Legal & General Retirement has written approximately £550m of total annuities year to date, in addition to the £3bn Aegon transaction, with a further £150m in lifetime mortgage lending.
Legal & General manages an annuity book of £45.5bn, and provides annuity benefits to over a million customers. In full year 2015 Legal & General Retirement (LGR) completed £2.4bn of bulk annuity deals.
Its operating profit grew 49% in 2015 to £639m and generated £417m net cash, up 22% on 2014.