LONDON (Alliance News) - Legal & General Group PLC on Tuesday published details of its annuity bond portfolio ahead of its earnings for 2015, following inquiries from sell-side analysts and investors.
The life insurer and investment manager said the bond portfolio backing its annuity business amounted to GBP39.0 billion at the end of 2015, versus GBP40.7 billion at the end of 2014.
Within its retirement arm, 4.4% of the bond portfolio was rated AAA, the top rating. About 28% of the portfolio was rated AA, around 33% at A and 31% at BBB. Bonds rated BB or below made up 3.2% of the portfolio.
By sector, 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, 6.7% to technology and telecoms, and 9.9% to industrials and oil & gas. Property comprised 4.8%, securitisations & debentures 28.6%, asset-backed securities 1.0% and 2.7% related to collateralized debt obligations.
Legal & General will report earnings for 2015 on March 15, along with details of its capital position under new Solvency II insurance rules.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Legal & General (LGEN)