The US is regarded as something of a graveyard for European insurers, as a string of well reported ventures by overseas life companies, into what is a highly competitive life market, have failed to bear fruit.  L&G's CEO Nigel Wilson's recent interview with the Financial Times casts some light on the scale of the firm's ambitions.  But why might L&G succeed where others have failed?

For one thing, L&G appears focused on replicating its UK mix of corporate pensions asset management and annuities de-risking activity in the US.  LGIM has established a firm bridgehead in the States, managing £127bn in assets for largely corporate pension schemes - many of which are exposed to the same longevity risks and funding stresses which can be found within the UK defined benefit system. As a result, the company has become a market leader in 'flightpath' discussions for pension schemes which are looking to embark upon a gradual, asset based journey towards a de-risking endgame. Mortality and liability profiles in the US are strikingly similar to those encountered in the UK and this is an area in which the company already possesses a vast body of expertise.  Moreover, the US de-risking market is widely expected to experience significant growth over the next ten years or so. 

...So in effect the company would be offering a mirror image of its European, capital-heavy business model in the US. This might mean that it can leverage the significant investments it's made in the real assets category which have become a defining point of the firm's growth over the past five years or so. That said, the infrastructure and private placement debt investing categories in the US are highly competitive - so much could depend on the firm's ability to source, analyse and successfully securitise and place an ever wider spectrum of credit assets on both continents.