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A.M. Best Comments on Credit Ratings of Legal & General Group Plc Following Announced Plan to Sell Its Mature Savings DivisionA.M. Best has commented that the Credit Ratings (ratings) of Legal & General Group Plc (L&G) (United Kingdom) and its rated subsidiaries remain unchanged following the announcement by L&G of an agreement to sell the company's Mature Savings division to the ReAssure division of Swiss Re Limited (Swiss Re) for GBP 650 million. (See below for a list of these companies and ratings.) The realisation of value, which is volatile and subject to fungibility constraints, from the sale of a business that attracts capital charges in Best's Capital Adequacy Ratio model, is likely to positively impact A.M. Best's view of L&G's near-term risk-adjusted capitalisation. A.M. Best notes the small increase expected by the company in its Solvency II coverage ratio. Value realised from the transaction provides further visibility to L&G's ability to meet the capital requirements associated with the company's ambitions to expand its pensions risk transfer activity and to increase holdings of direct investments. The transaction, which will initially take the form of a reinsurance contract, will be effective from 1 January 2018 and it is expected that the formal transfer of business will be completed in mid-2019. The Long-Term ICR of "a" of Legal & General Group Plc with a stable outlook remains unchanged. The FSR of A+ (Superior) and the Long-Term ICRs of "aa-", each with a stable outlook, remain uchanged for the following subsidiaries of Legal & General Group Plc:
This press release relates to Credit Ratings that have been published on A.M. Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Understanding Best's Credit Ratings. For information on the proper media use of Best's Credit Ratings and A.M. Best press releases, please view Guide for Media - Proper Use of Best's Credit Ratings and A.M. Best Rating Action Press Releases. A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com. Copyright © 2017 by A.M. Best Rating Services, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
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