Legal & General Retail Retirement has secured a new introducer agreement to provide annuities to Prudential customers with guaranteed annuity rates.
As part of the arrangement, from 1 November 2019, Prudential customers with guaranteed annuity rates will be introduced to Legal & General.
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.
The transaction follows the recent acquisition of MyFutureNow and is the division’s fourth introducer deal, following similar arrangements with AEGON, ReAssure and Sun Life Financial of Canada.
The new deal is expected to increase Legal & General’s individual annuity new business by 15% in the first year.
Emma Byron, managing director at Legal & General Retail Retirement Income, commented: “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.”