Legal and General Plc (L&G) has revealed that its shares have climbed higher after the organisation posted an update on its Institutional Retirement division, which specialises in bulk annuities.
The company has reaffirmed its solid outlook for the division, reporting bulk annuity volumes of £10 billion year to date, with exclusive agreements on a further £0.5 billion that is expected to close in the year.
According to the firm, of this £10.5 billion figure, £8.4 billion is UK and £2.1 billion is International, with L&G writing its highest ever volumes in the US and Canada.
The company noted that the pipeline for these pension risk transfers (PRT) is “strong” and that the market opportunity is “highly attractive”, with a target reiterated for between £50 billion-£65 billion in UK deals through 2028.
L&G also addressed its shift toward gilts-based investment strategies for the majority of the business the firm has written this year, which has ultimately reduced strain on UK PRT deals to 1%, well below its 4% guidance.
Furthermore, the company reiterated its financial targets, which includes 6–9% compound annual earnings growth from 2024–2027, as well as a return on equity exceeding 20%, and Solvency II capital generation of £5-6 billion.
