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Legal & General Group PLC on Tuesday said it has maintained positive momentum from the first half into the second, ‘despite market volatility’, which has had a ‘limited economic impact’ on the firm.
Shares were up 4.2% at 231.10 pence each on Tuesday morning in London.
The financial services firm said it expects to deliver annual operating profit growth in line with the 8% seen in the first half.
It said recent ‘extraordinary’ interest rate hikes have been challenging for its pension fund clients and counterparties of its Investment Management liability-driven investment business.
However, recent purchases of long-dated gilts by the Bank of England have helped to alleviate the pressure.
Its annuity portfolio continues to perform well, and ‘has not experienced any difficulty in meeting collateral calls and we have not been forced sellers of gilts or bonds’, it said. Further, it expects its UK annuity portfolio to be self-sustaining again in 2022.
L&G estimates a solvency coverage ratio between 235% to 240% as at September 30.
Group Chief Executive Nigel Wilson said: ‘Our businesses are resilient, and we are on track to deliver good growth in key financial metrics for [financial] 2022.’
The company kept its guidance for 2022 capital generation of £1.8 billion.
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