Legal & General’s capital update outweighs profit rise

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 insurelegal-general-group-logor 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.

Continue Reading “Legal & General’s capital update outweighs profit rise” at EuroNews

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