15th Nov 2006 13:55
Legal & General Group PLC15 November 2006 LEGAL & GENERAL GROUP PLC: CAPITAL AND CASH FLOW PRESENTATION Stock Exchange Release 15 November 2006 CAPITAL STRENGTH, SHAREHOLDER VALUE Legal & General today presents its approach to the management of Capital andCash Flow. The meeting is the second of a series of presentations for investorsand analysts on strategic aspects of the Company's business, and includes theinitial conclusions of a wide-ranging review of the Company's capital positionannounced last March. Group Chief Executive, Tim Breedon, said: "Over the last ten years we have managed our capital effectively, deliveringrapid and profitable business growth whilst rewarding shareholders withconsistent real increases in the dividend across the cycle. The current reviewaddresses the future quantum and structure of our capital base. Going forward wewill have in place a review mechanism which enables us to conduct a regularassessment of capital relative to business requirements. That will enable us torelease surplus capital should that situation arise. As at today's date, weestimate that we hold around £1bn of excess capital, largely the result ofrecent increases in value of the substantial equity and property component offunds invested on behalf of shareholders. As we achieve greater clarity fromcurrent regulatory and taxation consultations, we will put the appropriatestructure in place to enable this to form the basis of a return to shareholdersover the coming years." The Company's assessment of its capital position takes account of its continuingcommitment to a strong balance sheet and financial strength rating. These willcontinue to be key strategic differentiators. Legal & General's assessment alsofactors in assumptions about the continued profitable growth of its UK business,and has been subjected to rigorous stress testing. The Company plans to realign its capital structure to reflect changed regulatoryand market conditions. Planned changes to its capital structure includeestablishing a new company to assume the pension and annuity businessliabilities of Legal & General Assurance Society within the current financialyear subject to regulatory approval. Ends Note: There will be a live, listen only, teleconference link to the presentation. UKparticipants should dial 0800 528 6732. Those dialling from overseas should call+44 (0) 1452 562 249. Please ask for the 'Capital and Cash Flow Presentation'and provide your full name and organisation as well as the conference ID number- 1295158. The presentation slides will be available at: http://investor.legalandgeneral.com/presentations.cfm An audio-cast of the presentation will be available later this evening at thesame web address. Enquiries to: Investors: Jonathan Maddock, Head of Investor Relations 020 7528 6298 Nicola Marshall, Investor Relations Manager 020 7528 6263 Media: John Morgan, Media Relations Director 020 7528 6213 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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