Business
L&G plans to capitalise on favourable market condi
L&G plans to capitalise on favourable market condi.
About this update from Legal & General Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 0985Q\n Legal & General Group Plc\n 16 June 2020\n \n \n \n \n \n \n \n L&G plans to capitalise on favourable market conditions to issue RT1 debt; opportunity to reinforce balance sheet strength and underpin growth role in uncertain post-COVID-19 economy \n \n \n \n \n \n \n \n \n Legal & General Group Plc (\"Legal & General\") announces that it will arrange a series of fixed income investor calls commencing today, 16 June. A benchmark issue of GBP denominated Reg S Perpetual non-call 11.25 year Contingent Convertible Restricted Tier 1 notes will follow, subject to market conditions. The notes are expected to be rated [Baa3] by Moody's and [BBB] by S&P. \n \n \n Our decision to issue RT1 debt is motivated by favourable bond market conditions and serves as a further measure of prudence, since the longer-term economic impact of COVID-19 remains uncertain. This debt issuance also positions us strongly for the recovery phase from COVID-19, continuing our established Inclusive Capitalism strategy.\n \n \n Legal & General's solvency position is robust and our operational performance is resilient, supported by a strong new business pipeline. Our asset portfolio continues to perform well in absolute and relative terms, in light of the economic impact of COVID-19.\n \n \n We continue to support our customers, employees and society at large as we seek collectively to emerge from COVID-19. For more details of our efforts to help society through the pandemic, please refer to our website: \n www.legalandgeneralgroup.com/media-centre/in-the-news/our-response-to-covid-19-the-coronavirus/\n \n \n \n \n \n Balance sheet strength\n \n \n Legal & General's balance sheet is strong and the solvency ratio is robust. We expect our shareholder solvency ratio at half year to be in a range of 162% to 167% and a surplus over the Solvency Capital Requirement (SCR) of circa £6 billion. These estimates do not include the proposed RT1 debt issuance, and assume unchanged market conditions to the end of June.\n \n \n Our £76.9 billion annuity portfolio1 continues to outperform markets on downgrades and defaults due to thoughtful asset allocation and active asset management. For example, we have limited exposure to airlines, hotel, leisure and traditional retail which together repres...