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LGEN - Legal & General News Story

221.7p 1.4  0.6%

Last Trade - 9:55am

Large Cap
Market Cap £13.14bn
Enterprise Value £4.70bn
Revenue £66.05bn
Position in Universe 77th / 1814

UPDATE 1-Legal & General plans debt issue after 8% rise in assets since end-March

Tue 16th June, 2020 11:47am
(Adds detail, background, share price)
    LONDON, June 16 (Reuters) - British life insurer Legal &
General  LGEN.L  is planning to issue debt to capitalise on
favourable market conditions after seeing an 8% rise in assets
under management in the past two months, it said on Tuesday. 
    L&G, one of the largest investors in the UK stock market,
focuses on passive index-tracking funds which have become
increasingly popular since the coronavirus outbreak. 
    The company said the unit had estimated assets under
management of 1.23 trillion pounds ($1.56 trillion) at the end
of May, compared with 1.14 trillion pounds at the end of March.*:nL3N2CC29R
    L&G expects its shareholder solvency ratio - a key measure
of a firm's capital strength - to be in the range of 162% to
167% at the half-year, lower than the 174% it had reported for
the period to Feb. 28.*:nL8N2AX1HZ
    A level above 100% indicates an insurer has enough capital,
though analysts tend to look for higher solvency levels.
    Analysts and regulators have pointed to increased risks to
insurers' balance sheets from corporate debt downgrades and
defaults due to the global economic crisis.
    L&G said only 0.65% of the corporate bonds in its 77 billion
pound annuity portfolio had been downgraded to junk status this
    L&G's shares were trading at 233.4 pence at 1011 GMT, up 2%
but slightly underperforming the FTSE 100  .FTSE .    
    ($1 = 0.7910 pounds)

 (Reporting by Tanishaa Nadkar in Bengaluru and Carolyn Cohn in
London; Editing by Anil D'Silva and Jan Harvey)
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