Business
L&G UPDATES ON ITS SOLVENCY II POSITION
L&G UPDATES ON ITS SOLVENCY II POSITION.
About this update from Legal & General Group Plc
[{"type":"text","content":"\n \nRNS Number : 6102F Legal & General Group Plc 19 May 2017 \n\nLegal & General Group plc\n19 May 2017\nLEGAL & GENERAL UPDATES ON ITS SOLVENCY II POSITION: SURPLUS INCREASED TO £7.0BN, COVERAGE RATIO INCREASED TO 188% \nADDITIONALLY LEGAL & GENERAL PUBLISHES ITS 2016 SOLVENCY AND FINANCIAL CONDITION REPORTS\n· £7.0bn current estimated Solvency II surplus with a 188% coverage ratio, on shareholder basis with a recalculated dynamic Transitional Measures for Technical Provisions (\"TMTP\"); the basis on which the business is managed \n· First annual Solvency and Financial Condition Reports (\"SFCR\") for the year ended 2016 have been published today\nWe have a strong regulatory capital balance sheet and based on current market conditions, the Group's Solvency II surplus is estimated to be c.£7.0bn with Eligible Own Funds of c.£14.9bn and a Solvency Capital Requirement (\"SCR\") of c.£7.9bn and hence a shareholder basis coverage ratio of 188%2.\nAt our full year results we disclosed our year-end 2016 Solvency II surplus of £5.7bn and coverage ratio of 171% on a shareholder basis. This was following a year of record new business for Legal & General including £7.0bn of new annuity sales. The Group's diversified business model delivered total Solvency II new business strain of £96m for the year.\n \nChanges since the year-end position include:\n\n\n\n\n \n\n\nSolvency II coverage ratio\n\n\nChange/impact\n\n\n\n\nYear-end 2016, shareholder basis\n\n\n171%\n\n\n \n\n\n\n\nSolvency II net surplus generated in year to date\n\n\n \n\n\n8.2%\n\n\n\n\nSale of Cofunds and Dutch business3\n\n\n \n\n\n2.5%\n\n\n\n\nDebt: $1,350m Tier 2 debt raised (£1,100m), £600m Tier 1 debt called\n\n\n \n\n\n6.3%\n\n\n\n\nCurrent estimated position1, shareholder basis\n\n\n188%\n\n\n \n\n\n\n\nRecommended final 2016 dividend (£616m) not yet approved or paid Ref 1\n\n\n \n\n\n(7.7)%\n\n\n\n\nCurrent estimated position1, shareholder basis excluding dividend\n\n\n180%\n\n\n \n\n\n\n\nOur strong and high quality capital position is reflected in Standard & Poor's AA- credit rating. £11bn (81%) of the year-end's Eligible Own Funds is Tier 1 capital; £12bn (78%) following the debt changes mentioned above.\n ...