REG - Legal & General Grp - L&G Half Year Results 2016 Part 3 <Origin Href="QuoteRef">LGEN.L</Origin> - Part 3
09/08/2016 07:08
- Part 3: For the preceding part double click ID:nRSI5968Gb
LGR LGC LGA Insurance Total
At At At At At
30.06.15 30.06.15 30.06.15 30.06.15 30.06.15
£m £m £m £m £m
Equities - 410 - - 410
Bonds 2,737 61 252 - 3,050
Property 2,037 180 - 3 2,220
Cash, cash equivalents, loans & receivables - 112 268 - 380
Other assets 118 15 - - 133
4,892 778 520 3 6,193
Capital and Investments
Page 84
4.05 Direct Investments (continued)
(b) Analysed by segment (continued)
LGR LGC LGA Insurance Total
31.12.15 31.12.15 31.12.15 31.12.15 31.12.15
£m £m £m £m £m
Equities - 432 - - 432
Bonds 3,336 93 293 - 3,722
Property 2,157 186 - 4 2,347
Cash, cash equivalents, loans & receivables - 115 310 - 425
Other assets - 41 - - 41
5,493 867 603 4 6,967
(c) Movement in the period
Carrying Change in Carrying
value market value
01.01.16 Additions Disposals value 30.06.16
£m £m £m £m £m
Equities 432 65 (9) 20 508
Bonds 3,722 580 (182) 354 4,474
Property 2,347 198 (60) (28) 2,457
Cash, cash equivalents, loans & receivables 425 29 (23) 35 466
Other assets 41 3 - 2 46
6,967 875 (274) 383 7,951
Capital and Investments
Page 85
4.06 Bond portfolio summary
(a) LGR analysed by sector
Sectors analysed by credit rating
BB or
AAA AA A BBB below LGR LGR
30.06.16 30.06.16 30.06.16 30.06.16 30.06.16 30.06.16 30.06.16
£m £m £m £m £m £m %
Sovereigns, Supras and Sub-Sovereigns 898 6,747 114 200 58 8,017 17
Banks:
- Tier 1 - - - - 21 21 -
- Tier 2 and other subordinated - - 159 265 - 424 1
- Senior 100 564 1,046 85 - 1,795 4
Financial Services:
- Tier 1 - - - - - - -
- Tier 2 and other subordinated - - 31 10 - 41 -
- Senior 78 420 210 125 - 833 2
Insurance:
- Tier 1 - - - - - - -
- Tier 2 and other subordinated - - 136 60 26 222 -
- Senior - 15 418 184 - 617 1
Utilities 63 7 2,324 2,834 24 5,252 11
Consumer Services and Goods
& Health Care 174 1,181 2,041 2,407 124 5,927 12
Technology and Telecoms 46 156 550 2,181 115 3,048 6
Industrials1 - 24 1,082 967 103 2,176 5
Oil and Gas - 169 683 1,146 273 2,271 5
Property - 579 323 969 1 1,872 4
Asset backed securities 134 745 292 95 48 1,314 3
Securitisations and debentures2 252 2,335 6,948 2,151 850 12,536 26
Lifetime mortgage loans3 - - - 440 - 440 1
CDOs4 - 722 366 14 - 1,102 2
Total £m 1,745 13,664 16,723 14,133 1,643 47,908 100
Total % 4 29 34 30 3 100
1. Included within Industrials is a £599m exposure to
Basic Resources.
2. Securitisations and debentures have been reanalysed
in note 4.06(c).
3. Lifetime mortgage loans have increased in value since
inception predominantly due to the accrual of interest
on the loans.
4. The underlying reference portfolio has had no
reference entity defaults during the period. The CDOs
are termed as super senior since default losses on the
reference portfolio have to exceed 27.5%, on average
across the reference portfolio, before the CDOs incur
any default losses. Assuming an average recovery rate of
30%, then over 39% of the reference names would have to
default before the CDOs incur any default losses. The
CDOs are valued using an external valuation which is
based on observable market inputs. This is then
validated against the counterparty valuation.
Capital and Investments
Page 86
4.06 Bond portfolio summary (continued)
(a) LGR analysed by sector (continued)
Sectors analysed by credit rating (continued)
BB or
AAA AA A BBB below Other LGR LGR
30.06.15 30.06.15 30.06.15 30.06.15 30.06.15 30.06.15 30.06.15 30.06.15
£m £m £m £m £m £m £m %
Sovereigns, Supras and Sub-Sovereigns 921 5,458 126 208 8 1 6,722 17
Banks:
- Tier 1 - - 55 6 33 - 94 -
- Tier 2 and other subordinated 41 2 231 149 11 - 434 1
- Senior 73 383 891 137 3 - 1,487 4
Financial Services:
- Tier 1 - 4 - - - - 4 -
- Tier 2 and other subordinated 4 1 43 8 - - 56 -
- Senior 52 386 89 121 1 - 649 2
Insurance:
- Tier 1 - 4 10 71 - - 85 -
- Tier 2 and other subordinated 4 6 147 138 - - 295 1
- Senior - 49 346 138 - - 533 1
Utilities 3 5 2,154 2,329 24 - 4,515 11
Consumer Services and Goods
& Health Care 161 735 1,434 1,518 140 1 3,989 11
Technology and Telecoms 24 98 436 1,669 158 1 2,386 6
Industrials1 3 20 866 857 36 1 1,783 5
Oil and Gas 19 345 473 1,011 278 - 2,126 5
Property 2 364 231 814 - 2 1,413 4
Asset backed securities 296 671 197 73 33 - 1,270 3
Securitisations and debentures2 272 2,186 5,437 2,149 292 - 10,336 26
Lifetime mortgage loans3 - - - 38 - - 38 -
CDOs4 - 537 464 54 47 - 1,102 3
Total £m 1,875 11,254 13,630 11,488 1,064 6 39,317 100
Total % 5 29 34 29 3 - 100
1. Included within Industrials is a £507m exposure to
Basic Resources.
2. Securitisations and debentures have been reanalysed
in note 4.06(c).
3. Lifetime mortgage loans have increased in value since
inception predominantly due to the accrual of interest
on the loans.
4. The underlying reference portfolio has had no
reference entity defaults during the period. The CDOs
are termed as super senior since default losses on the
reference portfolio have to exceed 27.5%, on average
across the reference portfolio, before the CDOs incur
any default losses. Assuming an average recovery rate of
30%, then over 39% of the reference names would have to
default before the CDOs incur any default losses. The
CDOs are valued using an external valuation which is
based on observable market inputs. This is then
validated against the counterparty valuation.
Capital and Investments
Page 87
4.06 Bond portfolio summary (continued)
(a) LGR analysed by sector (continued)
Sectors analysed by credit rating (continued)
BB or
AAA AA A BBB below LGR LGR
31.12.15 31.12.15 31.12.15 31.12.15 31.12.15 31.12.15 31.12.15
£m £m £m £m £m £m %
Sovereigns, Supras and Sub-Sovereigns 956 4,774 64 154 30 5,978 14
Banks:
- Tier 1 17 35 - - 26 78 -
- Tier 2 and other subordinated - - 92 138 2 232 1
- Senior 49 421 859 77 1 1,407 4
Financial Services:
- Tier 1 - - - - - - -
- Tier 2 and other subordinated - 3 33 8 4 48 -
- Senior 63 396 106 140 - 705 2
Insurance:
- Tier 1 - - - 6 - 6 -
- Tier 2 and other subordinated - - 144 64 - 208 1
- Senior - 14 316 118 - 448 1
Utilities 43 8 1,847 2,593 27 4,518 11
Consumer Services and Goods
& Health Care 136 969 1,572 1,830 130 4,637 12
Technology and Telecoms 48 138 409 1,940 129 2,664 7
Industrials1 - 21 934 899 30 1,884 5
Oil and Gas 24 321 482 901 247 1,975 5
Property - 516 269 868 - 1,653 4
Asset backed securities 123 657 167 74 38 1,059 3
Securitisations and debentures2 258 2,152 5,489 2,349 331 10,579 26
Lifetime mortgage loans3 - - - 207 - 207 1
CDOs4 - 552 469 14 47 1,082 3
Total £m 1,717 10,977 13,252 12,380 1,042 39,368 100
Total % 4 28 34 31 3 100
1. Included within Industrials is a £455m exposure to
Basic Resources.
2. Securitisations and debentures have been reanalysed
in note 4.06(c).
3. Lifetime mortgage loans have increased in value since
inception predominantly due to the accrual of interest
on the loans.
4. The underlying reference portfolio has had no
reference entity defaults during the period . The CDOs
are termed as super senior since default losses on the
reference portfolio have to exceed 27.5%, on average
across the reference portfolio, before the CDOs incur
any default losses. Assuming an average recovery rate of
30%, then over 39% of the reference names would have to
default before the CDOs incur any default losses. The
CDOs are valued using an external valuation which is
based on observable market inputs. This is then
validated against the counterparty valuation.
Capital and Investments
Page 88
4.06 Bond portfolio summary (continued)
(a) LGR analysed by sector (continued)
Sectors analysed by domicile
EU Rest of
UK US excluding UK the World LGR
30.06.16 30.06.16 30.06.16 30.06.16 30.06.16
£m £m £m £m £m
Sovereigns, Supras and Sub-Sovereigns 6,133 571 635 678 8,017
Banks 638 780 635 187 2,240
Financial Services 270 229 277 98 874
Insurance 312 481 46 - 839
Utilities 2,673 390 2,125 64 5,252
Consumer Services and Goods & Health Care 1,214 4,054 464 195 5,927
Technology and Telecoms 508 1,267 879 394 3,048
Industrials 119 1,129 323 605 2,176
Oil and Gas 181 1,106 345 639 2,271
Property 1,410 385 12 65 1,872
Asset backed securities, securitisations and debentures1 11,539 1,086 462 1,203 14,290
CDOs - - 1,031 71 1,102
Total 24,997 11,478 7,234 4,199 47,908
1. Includes lifetime mortgage loans.
EU Rest of
UK US excluding UK the World LGR
30.06.15 30.06.15 30.06.15 30.06.15 30.06.15
£m £m £m £m £m
Sovereigns, Supras and Sub-Sovereigns 4,963 519 638 602 6,722
Banks 662 795 453 105 2,015
Financial Services 186 330 140 53 709
Insurance 463 341 91 18 913
Utilities 2,347 252 1,857 59 4,515
Consumer Services and Goods & Health Care 792 2,786 336 75 3,989
Technology and Telecoms 389 973 841 183 2,386
Industrials 199 735 266 583 1,783
Oil and Gas 193 1,088 354 491 2,126
Property 1,054 316 17 26 1,413
Asset backed securities, securitisations and debentures1 9,013 1,075 378 1,178 11,644
CDOs - - 1,026 76 1,102
Total 20,261 9,210 6,397 3,449 39,317
1. Includes lifetime mortgage loans.
Capital and Investments
Page 89
4.06 Bond portfolio summary (continued)
(a) LGR analysed by sector (continued)
Sectors analysed by domicile (continued)
EU Rest of
UK US excluding UK the World LGR
31.12.15 31.12.15 31.12.15 31.12.15 31.12.15
£m £m £m £m £m
Sovereigns, Supras and Sub-Sovereigns 4,305 455 647 571 5,978
Banks 568 582 441 126 1,717
Financial Services 217 373 159 4 753
Insurance 337 284 41 - 662
Utilities 2,355 313 1,796 54 4,518
Consumer Services and Goods & Health Care 870 3,212 391 164 4,637
Technology and Telecoms 462 1,217 787 198 2,664
Industrials 220 854 272 538 1,884
Oil and Gas 197 995 326 457 1,975
Property 1,286 324 12 31 1,653
Asset backed securities, securitisations and debentures1 9,570 884 355 1,036 11,845
CDOs - - 1,047 35 1,082
Total 20,387 9,493 6,274 3,214 39,368
1. Includes lifetime mortgage loans.
Capital and Investments
Page 90
4.06 Bond portfolio summary (continued)
(b) Total group analysed by sector
Sectors analysed by credit rating
BB or
AAA AA A BBB below Other Total Total
30.06.16 30.06.16 30.06.16 30.06.16 30.06.16 30.06.16 30.06.16 30.06.16
£m £m £m £m £m £m £m %
Sovereigns, Supras and Sub-Sovereigns 1,549 7,355 196 424 113 1 9,638 18
Banks:
- Tier 1 - - - 1 21 - 22 -
- Tier 2 and other subordinated - - 172 279 - 1 452 1
- Senior 207 865 1,335 102 1 1 2,511 5
Financial Services:
- Tier 1 - - - - - - - -
- Tier 2 and other subordinated - - 32 11 - 3 46 -
- Senior 85 504 259 161 2 2 1,013 2
Insurance:
- Tier 1 - - 1 - - - 1 -
- Tier 2 and other subordinated - 3 140 70 26 1 240 -
- Senior - 17 426 190 - - 633 1
Utilities 64 16 2,385 2,931 36 40 5,472 10
Consumer Services and Goods
& Health Care 210 1,218 2,195 2,630 207 11 6,471 13
Technology and Telecoms 58 185 614 2,302 142 3 3,304 6
Industrials1 - 34 1,194 1,125 158 5 2,516 5
Oil and Gas - 197 740 1,241 323 2 2,503 5
Property - 579 344 1,029 10 163 2,125 4
Asset backed securities 335 768 293 95 48 - 1,539 3
Securitisations and debentures2 309 2,337 7,011 2,180 865 - 12,702 24
Lifetime mortgage loans3 - - - 440 - - 440 1
CDOs4 - 722 366 14 - - 1,102 2
Total £m 2,817 14,800 17,703 15,225 1,952 233 52,730 100
Total % 5 28 34 29 4 - 100
1. Included within Industrials is a £605m exposure to
Basic Resources.
2. Securitisations and debentures have been reanalysed
in note 4.06(d).
3. Lifetime mortgage loans have increased in value since
inception predominantly due to the accrual of interest
on the loans.
4. The underlying reference portfolio has had no
reference entity defaults during the period. The CDOs
are termed as super senior since default losses on the
reference portfolio have to exceed 27.5%, on average
across the reference portfolio, before the CDOs incur
any default losses. Assuming an average recovery rate of
30%, then over 39% of the reference names would have to
default before the CDOs incur any default losses. The
CDOs are valued using an external valuation which is
based on observable market inputs. This is then
validated against the market valuation.
Capital and Investments
Page 91
4.06 Bond portfolio summary (continued)
(b) Total group analysed by sector (continued)
Sectors analysed by credit rating (continued)
BB or
AAA AA A BBB below Other Total Total
30.06.15 30.06.15 30.06.15 30.06.15 30.06.15 30.06.15 30.06.15 30.06.15
£m £m £m £m £m £m £m %
Sovereigns, Supras and Sub-Sovereigns 1,485 5,928 181 399 42 8 8,043 18
Banks:
- Tier 1 - - 55 9 33 - 97 -
- Tier 2 and other subordinated 133 4 248 183 14 1 583 1
- Senior 271 511 1,031 168 8 1 1,990 5
Financial Services:
- Tier 1 - 4 - - - - 4 -
- Tier 2 and other subordinated 10 5 51 14 1 - 81 -
- Senior 70 418 176 186 9 1 860 2
Insurance:
- Tier 1 - 4 10 72 - - 86 -
- Tier 2 and other subordinated 9 15 149 150 2 1 326 1
- Senior 1 89 359 146 - - 595 1
Utilities 7 18 2,235 2,423 33 2 4,718 11
Consumer Services and Goods
& Health Care 211 817 1,636 1,714 209 5 4,592 10
Technology and Telecoms 44 137 512 1,755 189 3 2,640 6
Industrials1 9 28 1,011 1,023 77 4 2,152 5
Oil and Gas 28 381 512 1,097 312 2 2,332 5
Property 4 367 243 866 11 64 1,555 4
Asset backed securities 670 706 201 75 34 - 1,686 4
Securitisations and debentures2 274 2,199 5,505 2,154 305 - 10,437 24
Lifetime mortgage loans3 - - - 38 - - 38 -
CDOs4 - 537 464 54 47 - 1,102 3
Total £m 3,226 12,168 14,579 12,526 1,326 92 43,917 100
Total % 7 28 33 29 3 - 100
1. Included within Industrials is a £520m exposure to
Basic Resources.
2. Securitisations and debentures have been reanalysed
in note 4.06(d).
3. Lifetime mortgage loans have increased in value since
inception predominantly due to the accrual of interest
on the loans.
4. The underlying reference portfolio has had no
reference entity defaults during the period. The CDOs
are termed as super senior since default losses on the
reference portfolio have to exceed 27.5%, on average
across the reference portfolio, before the CDOs incur
any default losses. Assuming an average recovery rate of
30%, then over 39% of the reference names would have to
default before the CDOs incur any default losses. The
CDOs are valued using an external valuation which is
based on observable market inputs. This is then
validated against the market valuation.
Capital and Investments
Page 92
4.06 Bond portfolio summary (continued)
(b) Total group analysed by sector (continued)
Sectors analysed by credit rating (continued)
BB or
AAA AA A BBB below Other Total Total
31.12.15 31.12.15 31.12.15 31.12.15 31.12.15 31.12.15 31.12.15 31.12.15
£m £m £m £m £m £m £m %
Sovereigns, Supras and Sub-Sovereigns 1,981 5,022 112 367 62 5 7,549 17
Banks:
- Tier 1 68 139 5 10 26 - 248 1
- Tier 2 and other subordinated 22 - 100 146 3 1 272 1
- Senior 105 721 992 98 3 1 1,920 4
Financial Services:
- Tier 1 - - - - - - - -
- Tier 2 and other subordinated - 3 38 16 - 1 58 -
- Senior 65 415 172 198 7 - 857 2
Insurance:
- Tier 1 - - - 6 - - 6 -
- Tier 2 and other subordinated - 3 146 68 1 1 219 -
- Senior 1 18 326 126 - - 471 1
Utilities 42 17 1,900 2,677 42 13 4,691 11
Consumer Services and Goods
& Health Care 170 1,004 1,707 1,993 210 4 5,088 12
Technology and Telecoms 61 169 472 2,027 151 1 2,881 7
Industrials1 - 38 1,039 1,075 67 2 2,221 5
Oil and Gas 27 342 517 958 280 1 2,125 5
Property - 516 287 912 9 81 1,805 4
Asset backed securities 511 672 164 74 42 - 1,463 3
Securitisations and debentures2 281 2,157 5,602 2,370 343 - 10,753 25
Lifetime mortgage loans3 - - - 207 - - 207 -
CDOs4 - 552 469 14 47 - 1,082 2
Total £m 3,334 11,788 14,048 13,342 1,293 111 43,916 100
Total % 8 27 32 30 3 - 100
1. Included within Industrials is a £455m exposure to
Basic Resources.
2. Securitisations and debentures have been reanalysed
in note 4.06(d).
3. Lifetime mortgage loans have increased in value since
inception predominantly due to the accrual of interest
on the loans.
4. The underlying reference portfolio has had no
reference entity defaults during the period. The CDOs
are termed as super senior since default losses on the
reference portfolio have to exceed 27.5%, on average
across the reference portfolio, before the CDOs incur
any default losses. Assuming an average recovery rate of
30%, then over 39% of the reference names would have to
default before the CDOs incur any default losses. The
CDOs are valued using an external valuation which is
based on observable market inputs. This is then
validated against the market valuation.
Capital and Investments
Page 93
4.06 Bond portfolio summary (continued)
(b) Total group analysed by sector (continued)
Sectors analysed by domicile
EU
excluding Rest of
UK US UK the World Total
30.06.16 30.06.16 30.06.16 30.06.16 30.06.16
£m £m £m £m £m
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