Legal & General Backs 2022 Views; Sees Solvency II Reform Proposal as Positive
18 November 2022 - 6:59PM
Dow Jones News
By Michael Susin
Legal & General Group PLC on Friday welcomed the solvency II
reform package laid out by U.K. Treasury chief Jeremy Hunt in the
Autumn Statement, and said that it expects its full-year
performance to be in line with expectations.
"We believe the proposals...represent positive progress and will
allow us greater flexibility to make appropriate investments,
including ones which: develop new infrastructure, contribute to the
U.K. government's leveling-up agenda, and support positive climate
outcomes," it said.
The company expects operating profit growth for 2022 to be in
line with the 8% delivered in the first half and sees a capital
generation of 1.8 billion pounds ($2.14 billion).
Legal & General estimates solvency coverage ratio as at Nov.
11 to be between 225% and 230%, mainly reflecting higher interest
rates and ongoing operational surplus generation. It expects the
reform to the risk margin to increase solvency ratio by 3 or 4
percentage points.
The company said its global pension risk transfer business has
continued to perform strongly with GBP9.3 billion of ongoing or
secured negotiations, above the GBP7.2 billion of global pension
risk transfer secured in 2021.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
November 18, 2022 02:44 ET (07:44 GMT)
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