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Pin to quick picksLegal & General Share News (LGEN)

Share Price Information for Legal & General (LGEN)

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Share Price: 251.90
Bid: 252.10
Ask: 252.20
Change: 1.90 (0.76%)
Spread: 0.10 (0.04%)
Open: 254.00
High: 257.50
Low: 251.30
Prev. Close: 250.00
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Legal & General updates market on bond portfolio

Tue, 09th Feb 2016 08:30

(ShareCast News) - As it looked to assuage investors' fears over its bond portfolio, insurer and investment manager Legal & General updated the market with details of its annuity bond portfolio on Tuesday.L&G said that as at the end of December, the bond portfolio backing its annuity business amounted to around £39bn, compared to £40.7bn in 2015.Meanwhile, 4.4% of the bond portfolio in its retirement business was rated AAA, 28% was rated AA, 33.4% was rated A, and 31% was rated BBB. 3.2% of the portfolio was rated BB or below.In terms of sectors, around 15% of the annuity bond portfolio related to sovereigns, supras, sub-sovereigns, 4.3% to banks, 1.9% to financial services, 1.7% to insurance, 11.5% to utilities, 11.6% to consumer services and goods & healthcare and 6.7% to technology and telecoms.Around 9.9% was related to industrials and oil & gas, 4.8% to property, 28.6% to securitisations & debentures, 1% to asset-backed securities and 2.7% to collateralised debt obligations.Shore Capital said: "These figures do not vary greatly compared to the end of 2014, with the extra detail offered being the breakdown of the 'industrials' line to separate 'oil & gas' and 'basic resources'."Not only are these figures low, around 5% and 1% respectively, we believe them to be of strong quality. This disclosure should nail concerns in the market over this exposure."Nomura, which rates the stock at 'buy', said: "We expect greater detail on the credit portfolio should allay market concerns on energy credit exposure. We still expect FY results on 15 March to be a positive catalyst."Legal & General is due to releases its 2015 earnings on 15 March, when it will also report its Solvency II capital position.At 1010 GMT, L&G shares were 2.3% higher to 207.70p.
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