Legal & General Group Plc · LSE:LGEN
Legal & General — FY2016 Earnings Presentation
13 slides from Legal & General's earnings presentation, May 2017
Slide 1: Legal & General Group Plc | Year End Results | March 2016
LEGAL & GENERAL GROUP PLC | YEAR END RESULTS | MARCH 2016
Slide 2: YE 2016 shareholder basis Solvency II ratio
200% 190% 6.3% (7.7%) 180% 8.2% 2.5% 170% 188% 160% 180% 150% 171% 140% 130% 120% 110% 100% YE 2016 Solvency II net Cofunds and Debt raise 15 May 2017 Final 2016 15 May 2017 shareholder surplus Netherlands & call shareholder dividend (not shareholder basis generated YTD disposals basis coverage yet
Slide 3: The SFCR summary: What is new?
The SFCR summary What is new? • • • • • • Draws heavily on existing Report & Accounts
Slide 4: Key SFCR references
• • • • • Key SFCR references Balance Sheet - S.02 Surplus Assets Own funds S.02 S.23 SCR – S.25 • Other Liabilities S.02 Technical Provisions S.02 S.12 S.17 S.22
Slide 5: 31 December 2016 Solvency II balance sheet summary
Regulatory 31 December 2016 (£m) SFCR reference basis SII value of total assets SII value of total liabilities SII excess of assets over liabilities Subordinated debt SII restriction on Own Funds for non-insurance participations SII Own Funds Group Solvency Capital Requirement Group Solvency II surp
Slide 6: Shareholder basis to regulatory basis reconciliation
Add back Change in Solvency II Shareholder Pension TMTP (incl. 1 Other Regulatory SFCR 31 December 2016 (£m) basis Scheme and year adjustments basis reference WPSF amortisation) Core Tier 1 11,038 726 (284) 15 11,495 E.1.3 Other Tier 1 608 - - - 608 E.1.3 Tier 2 2,108 - - - 2,108 E.1.3 Deductions (1
Slide 7: Differences explained: IFRS equity to Solvency II excess of assets
Differences explained by Consolidation Held for sale Conversion to Solvency II Total approach £m under IFRS £m D&A method £m valuation £m differences £m Section D.Note 1 Section D.Note 2 Section D.Note 3 Section D.Note 4 IFRS equity 7,283 Difference in assets (62,054) (54,836) 41 (4,595) (2,664) Dif
Slide 8: Solvency II 31 December 2016 subsidiaries: LGAS, LGI, PMC
Solvency II PMC SFCR LGAS LGI 31 December 2016 (£m) (part of LGIM) reference Own Funds 11,630 664 253 S.23.01 Solvency Capital Requirement 7,544 270 162 S.25.02 Surplus 4,086 394 91 Coverage ratio (%) 154% 246% 156% • • Subsidiaries show strong standalone capital positions
Slide 9: US Jurisdiction D&A position
SFCR • US Jurisdiction D&A position £m reference D&A Own Funds (excl. restriction) 442 S.23.01.22 D&A SCR • 198 S.25.02.22 Surplus 244 £500m • £400m Own Funds > 250% • 244 £300m 228 £442m Own Funds £200m (excl. Own restriction) 250% 17 Funds • 73 CAL > 200% £100m 29 200% 198 CAL 109 88 £0m Banner Li
Slide 10: Regulatory view: impact of removing TMTP
Impact of Solvency II Regulatory SFCR removing Without TMTP 31 December 2016 (£m) View reference TMTP Technical Provisions 382,753 6,687 389,440 S22.01.22 Eligible Own Funds 14,069 (5,651) 8,418 S22.01.22 Solvency Capital Requirement 8,635 930 9,565 S22.01.22 Surplus 5,434 (6,581) (1,147) Coverage r
Slide 11: Regulatory view: impact of removing Matching Adjustment
Impact of Solvency II Regulatory removing SFCR Without MA 31 December 2016 (£m) View Matching reference Adjustment Technical Provisions 382,753 8,343 391,096 S22.01.22 Eligible Own Funds 14,069 (7,067) 7,002 S22.01.22 Solvency Capital Requirement 8,635 9,560 18,195 S22.01.22 Surplus 5,434 (16,627) (
Slide 12: Forward looking statements
Forward looking statements This document may contain certain forward-looking statements relating to Legal & General Group, its plans and its current goals and expectations relating to future financial condition, performance and results. By their nature, forward-looking statements involve uncertainty
Slide 13: Legal & General Group Plc | Year End Results | March 2016
LEGAL & GENERAL GROUP PLC | YEAR END RESULTS | MARCH 2016