Legal & General Retail Retirement (L&GRR) has reached an agreement with Prudential allowing the insurer’s clients to access its guaranteed annuity products.
It will be available from 1 November 2019 for Prudential customers holding a guaranteed annuity rate, guaranteed basic annuity or guaranteed minimum pension product.
This is the fourth deal of its kind for L&GRR, following similar arrangements with Aegon, ReAssure and Canada’s Sun Life Financial.
All guaranteed benefits will be honoured by Prudential and fulfilled by L&G which will also compare rates with the whole market to see if they can be improved, the firm said.
“At Legal & General, we want to help our customers and our partners’ customers plan for and enjoy their best retirement. For many retirees, we believe annuities can play a central part in retirement planning,” said Emma Byron, managing director of L&GRR Income.
“As an industry, it’s vital that we continue to work together to keep those who are approaching, and in retirement, informed about their options so that they can choose the best solution for their individual needs.
“It’s the fourth introducer agreement Legal & General has secured for our retirement income business, and we look forward to a long and successful relationship with Prudential and their customers.”
Sale generated by L&G’s annuities business reached £497m ($620.7m, €561.8m) in the first half of 2019, and it expects its sales to grow by 15% in 2020.