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...On the same day, L&G chief executive Sir Nigel Wilson decried the “perpetual drift” of companies away from London’s stock market, attributing it in part to a decline in equity holdings among pension funds...
...Simões, who joined the business from Santander, replaced Sir Nigel Wilson, L&G’s chief of more than a decade....
...Insurers must put up capital against bulk annuities. The £4.9bn of bulk deals done in the first half required £106mn of capital....
...Royal London, another UK life insurer, said Friday it would enter the bulk annuities market in earnest....
...L&G declined to comment....
...The L&G transaction came on the same day that Rothesay, a UK life insurer, agreed to take on £4bn of the pension liabilities of the Co-operative Group, whose operations span supermarkets to funeral services...
...L&G’s retail business was also “bolstered” by rising individual annuity sales....
...Insurers are excited. Investors are more sceptical. One issue is that selling annuities is capital negative....
...Susannah Streeter, head of money and markets at Hargreaves Lansdown, said the big insurers offered attractive levels of dividends backed by fairly stable business models....
...L&G said there were four such deals in the first half of 2023. They included AT&T, which said in May it had offloaded $8bn of its pension obligations to US insurer Athene....
...Legal & General, the FTSE 100 insurer and asset manager, has appointed António Simões as its first new chief executive in more than a decade to replace Sir Nigel Wilson....
...Like bigger peers such as L&G, Just has a record pipeline of such deals in what is expected to be a record year for the market....
...Alternative asset managers like insurers a lot more than the stock market does. Insurers throw off steady cash flows that can be used for funding other investments....
...L&G: Shares in the UK-based insurer slipped 4 per cent despite strong annuity sales after it posted a first-half operating profit of £941mn, down 2 per cent year on year....
...Yet L&G also has a couple of potential offsets up its sleeve. High interest rates benefit insurers generally....
...They trade on just 3 times earnings, less than half the multiples of larger rivals such as Phoenix and L&G....
...Mike Martin, the group director at T L Dallas, an independent insurance broker in Bradford with 160 employees, said the firm had been affected by rules that required insurers to establish inside the EU in...
...Rising interest rates have prompted a boom in the annuity market as retirees jump at the better deals on offer, according to insurer Legal & General....
...Policy should be changed to encourage insurers and pension funds to invest outside the capital to reduce regional inequalities, he added....
...The results led analysts to predict that Novo would be able to persuade more insurers and health systems to pay for the drug....
...Flowers, who attempted a rescue of insurer AIG during the 2008 financial crisis, said investors were underestimating the risks resulting from a flood of money into private credit loans and a push by insurers...
...Insurer Legal & General has moved to reassure investors over its financial health after its share price tumbled during bond market turmoil that followed the announcement of Chancellor Kwasi Kwarteng’s “mini...
...The head of one of Britain’s largest insurers has decried the “perpetual drift” of companies away from London’s stock market, arguing that a low-growth economy and political infighting have eroded the UK...
...Legal & General chief executive Sir Nigel Wilson is to retire after more than a decade in the top job at the UK’s largest life insurer and investment manager....
...The insurers in the stress test were not named in Monday’s letter, but the life-insurance units of groups including Aviva and L&G had been invited to participate last year....
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