INSURANCE giant Legal & General has sought to reassure investors over its financial strength after suffering a hefty share fall amid mini-budget market turmoil.
The group said its balance sheet remains "robust" and that full-year earnings are on track, adding that the fall-out from Chancellor Kwasi Kwarteng's mini-budget has had a "limited economic impact" on its businesses.
It said the market unrest that caused the pound to plunge to a record low against the dollar had caused "challenges" for the pension fund clients and counterparties of its LGIM UK Liability Driven Investment (LDI) business.
However, it said the Bank of England's emergency gilt-buying programme last Wednesday had "helped to alleviate the pressure on our clients".
"We are continuing to work closely with them to achieve appropriate hedging levels in their portfolios," the company said.
L&G's shares tumbled as the full scale of the pension fund woes emerged last week, closing 13% below pre-mini-budget levels on Monday despite seeing gains on the day.
Shares rose nearly 5% in early trading today.
L&G sought to reassure investors over both parts of the business.
On annuities it said: "Despite volatile markets, the group's annuity portfolio has not experienced any difficulty in meeting collateral calls and we have not been forced sellers of gilts or bonds."
It said the group expects to deliver 2022 operating profit growth in line with the 8% growth delivered in the first half, while capital generation is set to come in at £1.8 billion.
Group chief executive Sir Nigel Wilson said: "Our businesses are resilient, and we are on track to deliver good growth in key financial metrics for full-year 2022."
He added: "Our balance sheet and liquidity position remain strong, and our businesses are highly cash-generative.
"We continue to work closely with our customers to support them through this period of increased market volatility."
One of Scotland's oldest quantity surveyors sold
HARDIES Property & Construction Consultants has acquired long-established Aberdeen quantity surveying practice BDG Thomson Gray, which was owned by Shirley Thomson, for an undisclosed sum.
Hardies said the deal bolstered its offering in north-east Scotland, where it did not previously have a quantity surveying department.
'Everyone is digging into their reserves of resilience'
THE founder of Innis & Gunn, Dougal Sharp, has declared “everyone is digging into their reserves of resilience” with economic uncertainty coming hard on the heels of the pandemic, but insisted there remains a huge opportunity for the brewer and bar owner to continue growing its brand.
Innis & Gunn reported a marginal fall in revenue for 2021, by one per cent to £21.1 million, when it faced global supply-chain upheaval and trading restrictions brought by the outbreak of the Omicron variant of coronavirus at the end of last year.
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