7th Jul 2022 09:35
(Alliance News) - Legal & General Group PLC on Thursday said it is performing in line with expectations with "minimal" exposure to inflationary pressures.
Citing a "good start" to 2022, "our year-to-date operating performance is in line with expectations, with cash and capital generation running slightly ahead of our five-year ambition and return on equity at about 20%," said Chief Executive Officer Nigel Wilson.
Legal & General Retirement Institutional has transacted GBP4.5 billion of global pension risk transfer business in the half-year, up from GBP3.1 billion a year before. Legal & General Capital remains on track to achieve its 2025 ambition of operating profit of GBP600 million to GBP700 million and fee-generating third party capital of GBP25 billion to GBP30 billion.
Wilson added that the firm is barely impacted by inflation.
"Volumes have been written at margins and capital strain that are in line with or better than our long-term average, largely driven by good asset origination and reinsurance terms," the FTSE 100-listed life insurance and financial services company said.
"We have a strong pipeline for the second half of the year and into 2023. Demand for global pension risk transfer is growing, as rising interest rates and widening credit spreads reduce pension deficits and allow more funds to consider de-risking. We have achieved self-sustainability on the UK annuity portfolio in 2020 and 2021, and expect it to be self-sustaining again this year," it added.
Legal & General shares were 3.8% higher at 242.10 pence each in London on Thursday morning.
By Tom Budszus; [email protected]
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