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Legal and General (L&G) has reinsured longevity risk relating to $2.9bn (£1.9bn) of pension liabilities in its bulk annuity business through Prudential Retirement Insurance and Annuity Company.
It is the reinsurer's second longevity hedging transaction with L&G after completing a deal covering £1.35bn of liabilities last October.
Prudential's longevity reinsurance vice president Bill McCloskey said: "We're pleased that Legal & General has offered us an opportunity to partner with them again to help solve pension challenges."
He said that the impact of longevity on pension schemes was a global issue that affected employees and employers.
"This latest transaction demonstrates the capacity we have as a reinsurer to support the pace of the market in the UK, which remains very active," he added.
As bulk annuity providers like L&G take on a growing amount of longevity risk, they often look to transfer it to other parties through longevity swaps or reinsurance.
In June Prudential reinsured longevity risk relating to £1.6bn of bulk annuity liabilities insured by Pension Insurance Corporation.