By Sabela Ojea


Legal & General Group PLC said Tuesday that it plans to issue insurance restricted tier 1 debt to take advantage of favorable bond-market conditions, as the longer-term uncertainty surrounding the coronavirus pandemic remains, and added that current trading is stable.

The FTSE 100-listed insurance company said that its current trading is in line with the previous year and that it achieved external net flows of 11.2 billion pounds ($14.0 billion) to the end of May. Total assets under management are estimated at GBP1.23 trillion, with revenue increasing 9% to GBP385 million.

Its annuity portfolio was GBP76.9 billion at June 1, which the insurer said continues to outperform markets on downgrades and defaults due to asset allocation and active asset management.

The company also said that its balance sheet and solvency ratio are strong--its shareholder solvency ratio at the first half of the year is expected to be in a range of 162% to 167%--and that it anticipates a surplus over the Solvency Capital Requirement of around 6 billion pounds ($7.5 billion).

"L&G is performing strongly. Accessing this market opportunity now both strengthens our capacity to deal with post-Covid-19 economic uncertainty and enables us to play a fuller part in the investment-led recovery which will be needed as we emerge from this pandemic," Chief Executive Nigel Wilson said.

Shares at 0918 GMT were up 6.60 pence, or 2.9%, at 235.50 pence.


Write to Sabela Ojea at; @sabelaojeaguix


(END) Dow Jones Newswires

June 16, 2020 05:48 ET (09:48 GMT)

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