Prudential Retirement Insurance and Annuity Company (PRIAC), a Prudential Financial, (PFI) company (PRU) has announced that it will provide reinsurance to UK-based insurer Legal & General Group.

Under the terms of the agreement, PRIAC will provide reinsurance of longevity risk for a portion of Legal & General’s pension bulk annuity business, which provides security to thousands of UK retirees.

Legal & General holds £24.6 billion ($39 billion) in bulk annuity assets as of June 30, 2014 and has completed £3.1 billion ($4.9 billion) in new transactions in the half year to June 30, 2014. PRIAC is providing longevity reinsurance on approximately £1.35 billion ($ 2.2 billion) of Legal & General’s bulk annuity portfolio.

"This transaction represents another milestone for the longevity reinsurance market and we’re pleased that Legal & General has chosen to partner with PRIAC for this arrangement," said Bill McCloskey, vice president, longevity reinsurance. "This collaboration underscores our proven ability to tailor reinsurance solutions for the largest and most sophisticated pension insurers in the world."

Tom Ground, Head of Bulk Annuities and Longevity Insurance at Legal & General, said; "Legal & General is pleased to be able to tap into PRIAC’s longevity reinsurance capacity to support the growth of our market-leading pension risk transfer business in the UK."

PFI has completed the largest known pension and longevity risk transfer transactions in the UK and North America, having completed the General Motors, Verizon and BTPS transactions and recently entering into agreements with Motorola and Bristol-Myers Squibb to settle pension liabilities.