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Legal & General delivers ‘strong’ growth, announces debt issuance

Legal & General has said that it remains well-placed to deliver “strong, attractive growth” and returns in its core markets despite the ongoing pandemic.

In its latest trading update, the group announced that its insurance business achieved total gross written premiums of £697m, up 4% against the year prior. 

To date, overall coronavirus claims for the group have “remained modest”, and it continues to monitor mortality claims. It added that overall exposure is limited as the group reinsures the majority of its UK mortality risk.

Looking ahead, the group hopes to address its structural growth drivers, including ageing demographics, globalisation of asset markets, investing in the real economy, welfare reforms, technological innovation and addressing climate change.

In its latest update, the group also announced its intention to issue debt to capitalise on new business opportunities. It expects to launch the GBP-denominated benchmark Tier 2 subordinated debt issuance shortly. 

Legal & General said that given the “robust new business activity year to date and the strong pipeline”, it aims to capitalise on favourable debt market conditions. It will confirm the amount of debt raised after the issuance has settled.

Nigel Wilson, CEO of Legal & General, said: “Legal & General’s outstanding front-line staff have continued to help provide more certainty for our millions of insurance and pension customers who we recognise are often under pressure as a result of Covid-19

“Our business remains robust and is performing broadly in line with the prior year despite tremendous volatility and disruption.”

He added: “Our current strength underpins our future focus and determination to use inclusive capitalism to help address the economic dislocation caused by the pandemic and to help drive economic growth over the longer-term.”

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