Business
LEGAL & GENERAL CAPITAL MARKETS EVENT
LEGAL & GENERAL CAPITAL MARKETS EVENT.
About this update from Legal & General Group Plc
[{"type":"text","content":"\n \nRNS Number : 8732H Legal & General Group Plc 13 June 2017 \n\nLegal & General Group plc\n13 June 2017\nLEGAL & GENERAL CAPITAL MARKETS EVENT \n \nLegal & General Group Plc (\"L&G\") will host an event for investors and analysts on Tuesday 13 June at 1 Coleman St, London, EC2R 5AA. The event starts at 9.30am, and will be focused on the management of L&G's credit portfolio including how it performs in stress scenarios. No material new information will be disclosed.\n \nLegal & General Investment Management (LGIM), with AUM of £894bn at the 2016 year end, is responsible for managing the £54bn Legal & General Retirement (LGR) asset portfolio, which comprises the significant majority of Legal & General's credit exposures is well diversified and has strong credit quality. The portfolio consists of approximately £12.4bn of sovereign investments, £8.1bn of direct investments and £33.5bn of other credit investments with 69% of the £49.5bn bond portfolio invested in A rated or better credit and 29% is rated BBB. Legal & General holds a credit default reserve of c.£2.7bn as of 31 December 2016\n \nThe presentation by Jeff Davies, Group CFO, Kerrigan Procter, LGR CEO, and Simon Gadd, Group CRO, will cover:\n \n· How the credit default reserve is calculated\n· Our approach to management of the credit portfolio\n· How our business is expected to perform under various credit scenarios\n· How our risk management processes work\n \nJeff Davies, Group CFO, said: \"Managing credit risk is at the core of the skillsets of the Legal & General Group. We have managed a high performing global portfolio of c.£50bn with just £26m of defaults between 2007 and 2016. Today's presentation shows the portfolio is robust in a 2001/2002 adverse default and downgrade scenario, which was more extreme than the credit crisis experience in 2008. Our risk management approach and strong default reserves give us a confidence which is borne out by the scenario testing we are presenting today.\"\n \nBusiness Performance \nLegal & General has had a strong start in the year to date.\n \n· LGR ha...