L&G will be the sole funder of new lifetime mortgages originated by Newlife following a funding agreement which it said will provide another ‘attractive source’ of direct investment assets to back L&G’s annuity liabilities.
Managing director of Legal & General’s individual retirement business Bernie Hickman said: “Over 60s in the UK have nearly £1.3trn in housing equity and we believe lifetime mortgages will become an increasingly popular way for many people to supplement their retirement income.
“Legal & General’s acquisition of Newlife allows us to participate fully in this [equity release] market, which we believe has huge potential. With close to £40bn of annuity assets we have considerable capacity to provide future funding in this growing market.”
Newlife was founded in 2003 and is a privately-owned UK-based company.
