As part of the arrangement, from 1 November, Prudential customers with guaranteed annuity rates will be introduced to Legal & General.
The the firm says the agreement reflects its commitment to the annuities market and is the fourth of its kind for the FTSE 100 financial services company, following similar arrangements with Aegon, ReAssure and Sun Life Financial of Canada.
All guaranteed benefits will be honoured by Prudential and fulfilled by Legal & General, which will also compare the whole market to see if the rate can be improved on, assisting customers to obtain a better rate if one is available.
Emma Byron, managing director, Legal & General Retail Retirement Income, said: “At Legal & General, we want to help our customers and our partners’ customers plan for and enjoy their best retirement.
“For many retirees, we believe annuities can play a central part in retirement planning.
“I’m therefore delighted to announce we are partnering with Prudential to offer their customers the option of a guaranteed income from an annuity.
“As an industry it’s vital that we continue to work together to keep those who are approaching, and in retirement, informed about their options so that they can choose the best solution for their individual needs.
“It’s the fourth introducer agreement Legal & General has secured for our Retirement Income business, and we look forward to a long and successful relationship with Prudential and their customers.”
Legal & General’s recent half-year results revealed growth for its individual annuities business with sales up 47% to £497m in H1 2019.
The firm says it expects the new distribution deal with Prudential to boost Legal & General’s annuity sales in 2020 by 15%.