Legal & General Retirement America and Reinsurance Group of America (RGA) teamed up to strike a $309m pension risk transfer (PRT) deal with Fortune 500 firm PPG.
Pittsburgh-based PPG is a paint manufacturer and the deal inked with the two insurers covers over 4,000 retirees and beneficiaries of the firm’s defined benefit pension plan.
Post transfer LGRA will be the plan’s lead administrator and therefore fully responsible for the service and administration of all participants it now covers.
In a press release RGA described the deal as the continuation of a decades long partnership between the two groups, with RGA providing reinsurance services to the UK-headquartered firm’s US business.
The US PRT sector saw a robust 2022, with a 28% increase in activity to reach $52bn versus according to a March report by consultants Aon and this high level of activity is continuing according to LGRA which said in the RGA press release that the US PRT market was growing in importance.
RGA has been active in the US PRT market for over 15 years while LGRA was established in 2015.