UK insurer Legal and General has agreed an ''exclusive partnership arrangement'' with New Ireland Assurance today.
This will see Legal and General reinsure €136m of New Ireland's existing annuity business as well as some of its future business.
It also means L&G will be responsible for paying defined benefit or final salary pension promises covered in the deal, discharging New Ireland of its liabilities.
The deal covers both annuities purchased by individual customers and bulk annuities arranged by Irish pension schemes.
Buyouts or de-risking activity of this sort has become common as employers and life offices shift the payment of pension promises off their balance sheets.
"The Irish annuity market is seeing strong demand both from individuals retiring and from pension schemes and their corporate sponsors who are seeking to de-risk,'' commented Elaine Spillane, Head of Group Risk and Annuities at New Ireland Assurance.
''Our partnership with Legal & General will allow us to grow our market share while managing the risks in our business appropriately,'' she added.
