LONDON (Reuters) – Legal & General reported a capital position short of some forecasts on Tuesday, triggering a share price fall.
L&G shares were 5.5 percent lower at 1012 GMT, despite the British insurer reporting a 14 percent rise in 2015 operating profit and an increased total dividend of 13.4 pence a share.
Traders focused instead on the insurer’s capital position, with new European Solvency II capital rules requiring hefty amounts of capital to write long-term insurance.
L&G said it had a solvency capital ratio of 169 percent under the new rules.
A ratio of 100 percent shows sufficient capital to cover underwriting, investment and operational risks.