LONDON--Legal & General Group PLC (LGEN.LN) said Friday that it has entered into a pension annuity contract with a U.S. unit of Koninklijke Philips N.V. (PHIA.AE).

The British financial services company has entered into an agreement to provide retirement payments under a group annuity contract to around 14,000 of Philips' U.S. retirees and other former employees. The pact is expected to reduce pension obligations of the electronics company.

Under the agreement, Philips is transferring $900 million of its pension obligations equally between Legal & General America and Prudential Insurance Company of America, with each insurer providing 50% of the total monthly benefits to Philips' retirees.

Write to Tapan Panchal at tapan.panchal@wsj.com

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(END) Dow Jones Newswires

October 02, 2015 02:24 ET (06:24 GMT)

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