General Insurance Article - S&P confirms L&G rating as AA- stable outlook

 The rating committee upgraded their assessment of Legal & General “Management and Governance” from ‘Satisfactory’ to ‘Strong’. Standard & Poors highlighted the following rational for the rating:

 1. U.K. based Legal & General group (L&G) has improved its management effectiveness and its focus on its strengths in recent years. In our view, this will help L&G to limit the potential turmoil following the U.K.'s
 vote to leave the EU.
 2. We also take a positive view of L&G's recent disposals and its increased use of longevity reinsurance, which have increased the group's headroom for capital adequacy at the 'AA' level under our forecast.
 3. We are affirming our 'AA-' ratings on the group based on the strength of its competitive position in the U.K. life and asset management sectors and its strong financial flexibility.
 4. The stable outlook reflects our opinion that L&G will manage growth in annuity capital requirements at levels commensurate with its capital generation, allowing it to maintain very strong capital adequacy.

 Mark Gregory, Legal & General Group CFO said:“We are one of the highest rated insurance companies in Europe. Our strong credit rating and competitive position in both the UK and US asset management and life sectors, enables us to execute our clear and focused growth strategy based on the five long-term business drivers: Aging populations, Globalisation of asset markets, Creation of real assets, Welfare reform and Digital.”