Regulator approves L&G's plan to open reinsurer

LONDON—Legal & General Group P.L.C., the London-based life and non-life insurer, has received authorization from the U.K. financial services regulator to establish a new life reinsurance company.

Last month L&G announced that it is to open a reinsurance company, Legal & General Pensions Ltd., to accept its pensions business. The new company will reinsure L&G's U.K. non profit pensions business, predominantly annuities.

The company said in a statement that the new structure will create a more efficient vehicle to support its annuity business, particularly in light of "opportunities opening up in the corporate pensions marketplace."