Legal & General is to begin offering annuities to Prudential pension savers from 1 November as part of a new “introducer” deal it has struck with its insurance rival.

Legal & General will provide annuities to Prudential customers with guaranteed annuity rates and has also promised to assist retirees in obtaining a better rate should a market comparison come up with one.

The new deal is expected to increase Legal & General’s individual annuity new business by 15 per cent in 2020, and follows on from similar deals with Aegon, ReAssure and Sun Life Financial of Canada.

Legal & General’s recent half-year results revealed significant growth for its individual annuities business with sales up 47 per cent to £497m in the first half of 2019.

While the annuity market has been devastated by the introduction of pension freedoms in 2015, Legal & General has profited from a commitment to the market.

It has seen its total market share more than double in the last two years.

“For many retirees, we believe annuities can play a central part in retirement planning,” said Legal & General retail retirement income managing director, Emma Byron.

“As an industry it’s vital that we continue to work together to keep those who are approaching, and in retirement, informed about their options so that they can choose the best solution for their individual needs.

“We look forward to a long and successful relationship with Prudential and their customers”

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