Legal & General Backs 2022 Views; Sees Solvency II Reform Proposal as Positive

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 [e-mail]

(END) Dow Jones Newswires

November 18, 2022 02:44 ET (07:44 GMT)

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