Standard & Poor's confirms Legal & General Group rating as AA- stable outlook
Standard and Poor's have held their annual rating committee on Legal & General Group core subsidiaries, and affirmed their rating at AA- Outlook Stable.
Standard and Poor's have held their annual rating committee on Legal & General group core subsidiaries, and affirmed their rating at AA- Outlook Stable. Legal & General appreciate the rigour and analysis S&P have undertaken in arriving at the rating. Legal & General is only one of four European Insurers rated 'AA' range.
The rating committee upgraded their assessment of Legal & General "Management and Governance" from 'Satisfactory' to 'Strong'. Standard & Poors highlighted the following rational for the rating:
U.K. based Legal & General group (L&G) has improved its management effectiveness and its focus on its strengths in recent years. In our view, this will help L&G to limit the potential turmoil following the U.K.'s vote to leave the EU.
We also take a positive view of L&G's recent disposals and its increased use of longevity reinsurance, which have increased the group's headroom for capital adequacy at the 'AA' level under our forecast.
We are affirming our 'AA-' ratings on the group based on the strength of its competitive position in the U.K. life and asset management sectors and its strong financial flexibility.
The stable outlook reflects our opinion that L&G will manage growth in annuity capital requirements at levels commensurate with its capital generation, allowing it to maintain very strong capital adequacy.
Mark Gregory, Legal & General Group CFO said:
"We are one of the highest rated insurance companies in Europe. Our strong credit rating and competitive position in both the UK and US asset management and life sectors, enables us to execute our clear and focused growth strategy based on the five long-term business drivers: Aging populations, Globalisation of asset markets, Creation of real assets, Welfare reform and Digital."
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Notes to editors:
Legal & General Group Plc:
Established in 1836, Legal & General is a leading provider of insurance, savings and investment management products in the UK. The Group has a market capitalisation of £11.8bn (as at 21 July 2016) and LGIM is responsible for investing £746bn worldwide (as at 31 December 2015) on behalf of investors, policyholders and shareholders. Legal & General has over seven million customers in the UK for life assurance, pensions, investments and general insurance plans and over one million customers in the US who rely on us for life assurance. In 2015, Legal & General's operating profit (on the IFRS basis) was £1,455m and adjusted earnings per share were 18.58p for the period, an increase of 14% and 11% respectively.
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