Following a review of U.K.-based Legal & General Group (L&G), Standard & Poor’s Ratings Services affirmed its ‘AA-‘ long-term insurer financial strength and credit ratings for L&G’s core operating subsidiaries.
The rating reflects S&P’s view of “L&G’s very strong competitive position as a leading annuity, protection, savings, and asset management solutions provider in the U.K., which is one of the more developed life insurance markets in Europe.” The S&P report also credits L&G’s “very strong capital adequacy and strong ability to source capital and liquidity” as one of the factors supporting the review.
The favorable outlook is based on S&P’s belief that L&G “will maintain its diverse competitive position in the U.K. market and report above-average profitability compared with peers.” S&P anticipates “that the short-term pressures caused by regulatory and legislative changes in the U.K. life insurance market will affect L&G less than its U.K. peers, given the group’s diversity.”
The Legal & General America companies, Banner Life Insurance Company and William Penn Life Insurance Company of New York, share the financial strength AA- rating assessment with our parent company.
Read the full report here.