2nd Oct 2015 06:12
LONDON (Alliance News) - FTSE 100-listed insurer and investment manager Legal & General Group PLC on Friday said it has secured an agreement with the US arm of Dutch electronics company Royal Philips to provide retirement payments under a group annuity contract.
The contract will cover around 14,000 Philips employees in the US and will cut the company's pension obligations when the contract transfers in December.
L&G said the transfer of the USD900.0 million in retiree pension obligations will be split between Legal & General America and The Prudential Insurance Company of America, with each insurer providing 50% of the total monthly benefits.
In addition, American United life Insurance Co will issue annuities to plan participants who had not retired by May 2015, which will bring the total value of the transaction to around USD1.1 billion, split between the three companies.
"We are very pleased to have signed an agreement with Philips for our first US pension group annuity contract. The US is a key market for Legal & General. We have a successful US life assurance business, are rapidly growing our investment management business, and have now entered the US pension risk transfer market," said L&G Chief Executive Nigel Wilson.
By Sam Unsted; [email protected]; @SamUAtAlliance
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