UK financial services group Legal & General (L&G) has reported “limited economic impact” to its business from the financial volatility in the UK over the past few weeks, as well as from wider unstable macro conditions.
Last week, the Bank of England took the unprecedented step of making “urgent” targeted purchases in the gilt market to maintain financial stability following a negative market reaction to new budgetary measures introduced by the UK Government.
Analysts at Goldman Sachs were among those to note that potential collateral calls and sharp moves in interest rates could pressure UK life insurer stocks.
However, Moody’s felt that liquidity buffers should help to limit their impact, and expressed confidence that UK insurers would navigate the gilt volatility.
With some degree of calm now returning to the UK financial markets, Legal & General has confirmed that it has managed to maintain the positive momentum it built over the first half of 2022, and is “continuing to deliver in H2,” with no changes to its full-year operating profit and capital generation…
