Legal and General (L&G) Retail Retirement has agreed an introducer agreement within its retirement income division to provide annuities to Prudential customers with guaranteed rates.
The arrangement - which will take effect from 1 November 2019 - is the fourth of its kind for L&G, following similar agreements with Aegon, ReAssure, and Sun Life Financial of Canada.
It follows the publication of L&G's half-year results last month which revealed that its individual annuity business sales were up 47% to £497m in the first half of 2019. The insurer said that it expects the deal with Prudential to increase its annuity sales in 2020 by 15%.
As part of the deal, all guaranteed benefits will be honoured by Prudential and fulfilled by L&G, which will also compare the entire market to see if the rate can be improved, it said.
L&G further added that it will assist customers to get a better deal if a better rate is available.
L&G Retail Retirement Income managing director Emma Byron said: "For many retirees, we believe annuities can play a central part in retirement planning."
She also noted that it is vital that the industry works together to keep both those who are approaching their retirement and already in retirement informed of their options, so they can choose solutions which are tailored to their needs.
Byron added: "We look forward to a long and successful relationship with Prudential and its customers."
The news follows L&G's record-breaking £4.6bn buyout of the Rolls Royce Pension Scheme in June, amid a busy year for buy ins and buyouts in the market, which is expected to continue in the second half of the year.
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