Prudential Enters into $2.2 Billion Longevity Risk Transfer Transaction with Legal & General Group Plc

December 3, 2014

Deal is Prudential’s third longevity transaction in 2014 that Willkie has handled. 

The firm recently represented Prudential Retirement Insurance and Annuity Company (PRIAC) in its $2.2 billion longevity risk transfer transaction with Legal & General Group Plc.  Under the terms of the transaction, PRIAC will provide reinsurance of longevity risk for a portion of Legal & General’s pension bulk annuity business, which provides security to thousands of U.K. retirees. This was Prudential’s third longevity transaction in 2014, following its agreement to reinsure $27.7 billion of longevity risk associated with BT Pension Scheme’s liabilities (the largest single longevity transaction on record) and $1.7 billion of longevity risk associated with Rothesay Life Limited’s liabilities under 93 U.K. defined benefit plans.

PRIAC is a subsidiary of Prudential Financial, Inc., a financial services leader with more than $1.1 trillion of assets under management as of June 30, 2014 and operations in the United States, Asia, Europe, and Latin America. Through its subsidiaries and affiliates Prudential Financial offers a wide array of financial products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management, to individual and institutional customers through one of the largest distribution networks in the financial services industry.

Legal & General is one of the U.K.'s leading financial services companies and one of the U.K.'s top 50 companies in the FTSE 100 Index.  Legal & General has been an active participant in the insurance solution pension de-risking market for nearly 30 years.

The Willkie deal team was led by partner Vladimir Nicenko, and included UK partner Nicholas Bugler, special counsel Cindy Chernuchin and associates Laura Marcelli and Patrick Tedesco.  Partners Alan Lipkin and Graham Lane and associate Jason Taylor assisted with U.S. and U.K. insolvency matters, and of counsel Arthur Lynch and associate Robert Larimore assisted on tax matters.