Legal & General and Aegon have announced a five-year distribution agreement to offer Legal & General individual annuities to Aegon customers.

The partnership is expected to generate circa £190 million of individual annuities within the first 12 months.

The distribution agreement will start in October, when Aegon stops writing new annuity business. In May Legal & General acquired a £2.9 billion annuity portfolio from Aegon, covering approximately 27,000 of in-payment policyholders.

Stephen Griffiths, Commercial Director, Individual Retirement (photo) said: “It’s excellent news Aegon have chosen us as their annuity partner, and I look forward to providing Aegon’s customers with great value annuities and excellent customer service.”

Aegon pension customers with annuity guarantees will have these provided by Legal & General. Customers without a guarantee will have the option of getting an annuity quote, if they want, when considering their retirement options.

Legal & General Retirement sales year to date across bulk annuities, individual annuities and lifetime mortgages are £4.75 billion, (£4 billion in H1 2016 compared to £1.36 billion in H1 2015). In July it announced a £750 million pension risk transfer deal with the ICI Pension Fund, and a 5 year agreement to offer lifetime mortgages to Santander customers.