Savings business offloaded to Swiss Re
Legal & General sells one million policies
Swiss Re‘s ReAssure division is a life and pensions business designed to manage closed and non-core in-force portfolios.
Legal & General said it was confident that the sale will deliver positive results for its customers “who will benefit from this focus and economies of scale in the specialisms required.”
The business being sold comprises principally retail customers who hold traditional insurance based pensions, savings and investment products. Its £33 billion of assets include both unit-linked business and Legal & General’s £21.4bn with-profits fund. It has largely been closed to new business.
Legal & General’s continued growth in these product areas will be through Legal & General Investment Management’s workplace pension business which now has approximately 2.5m customers, through its intermediated retail savings business and through its personal investing unit which offers ISAs and Unit Trusts directly to customers.
Nigel Wilson, chief executive of Legal & General Group, said: “This was a difficult decision as with-profits savings has been a part of Legal & General’s UK business for over 50 years.
“However we have in Swiss Re a great partner, who will be an excellent steward of the business and its many customers and policyholders. Selling Mature Savings is the right decision for us – another important, measured, step in growing our company and updating our products.
“It will drive further earnings growth by allowing us to focus on our successful market-leading businesses and to accelerate the scaling up of our growth businesses.
“Under-saving, including for retirement, is an economic and social challenge for the UK, and Legal & General remains committed to providing attractive solutions to help our customers achieve their financial goals based around LGIM’s modern workplace savings, personal investment and intermediated product range.”