Legal & General’s Retail Retirement division has signed a new introducer agreement with Prudential.
As part of the arrangement, from 1 November 2019, Prudential customers with guaranteed annuity rates will be introduced to Legal & General.
This is the fourth of its kind for the financial services company, following similar arrangements with AEGON, ReAssure and Sun Life Financial of Canada.
All guaranteed benefits will be honoured by Prudential and fulfilled by Legal & General, who will also compare the whole market to see if the rate can be improved on, assisting customers to obtain a better rate if one is available.
Emma Byron, managing director of Legal & General Retail Retirement Income, 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. I’m therefore delighted to announce we are partnering with Prudential to offer their customers the option of a guaranteed income from an annuity.
“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.”
Legal & General’s recent half-year results revealed significant growth for its individual annuities business with sales up 47% to £497m in H1 2019. It is expected that this new distribution deal with Prudential will increase Legal & General’s annuity sales in 2020 by 15%.