Legal & General is transferring its insurance-based savings and pensions products to Swiss Re in a £650m deal.
The disposal includes the all older individual life, savings, pensions and with-profits products. L&G says that this transfer will help the business accelerate growth in other parts of its business.
These policies within this mature savings unit are largely closed to new business, but have around £33bn of assets under management. The deal is expected to affect around 1m clients.
In a statement to policyholders L&G says: “Swiss Re has a proven track record of successfully managing transfers like this over the past 30 years.
“We feel that Swiss Re will be a more natural owner for the affected products given that it is focussed on the management of policies closed to new business.”
The transfer is expected to take around 18 months, with the majority of policies transferring over in mid 2019.
Swiss Re says it plans to manage these policies through its ReAssure division.
Legal & General chief executive Nigel Wilson says: “Selling Mature Savings is the right decision for us, another important, measured step in growing our company and updating our products.
“It will drive further earnings growth by allowing us to focus on our successful market-leading businesses and to accelerate the scaling up of our growth businesses.
