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Legal & General acquires £3bn Aegon annuity portfolio

Published 23/05/2016

Legal & General is acquiring a £3bn annuity portfolio from Dutch insurer Aegon
Legal & General is acquiring a £3bn annuity portfolio from Dutch insurer Aegon

Insurance giant Legal & General has struck an agreement to acquire a £3 billion annuity portfolio from Aegon.

The deal, which covers 27,000 policyholders, is part of Aegon's "strategic repositioning" of its British operations.

Chief executive Alex Wynaendts 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."

In April the Dutch insurer also sold £6 billion of annuities from its UK subsidiary Scottish Equitable to Rothesay Life.

Legal & General Retirement managing director Kerrigan Procter flagged more consolidation in the sector to come.

"In the UK there is an estimated £100 billion of individual annuities in back books and we expect further consolidation of these back books," he said.

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