L&G says IFRS 17 adoption won’t alter strategy, solvency or dividend plans

Written by Adam Cadle

05/07/2023

L&G’s adoption of global accounting standard, IFRS 17, will not alter its strategy, solvency, or dividend plans, the insurer said, as it remains on track to achieve its 5-year ambitions.

The insurer’s solvency coverage ratio is expected to be around 225% as at 30 June.

“Over 2020-2024, we expect to generate £8-9bn of capital, to grow EPS (earnings per share) faster than DPS (dividends per share), and cumulatively for net surplus generation to exceed dividends," the company said in a statement.

"Looking forwards, we expect the adoption of IFRS 17 to result in a more stable and predictable operating profit profile for L&G," it added.

Furthermore, the insurer said it had struck £6.8bn of pension risk transfer deals in the year to date, with £5bn completed by the half-year.

"There has been a step-up in the number of pension schemes approaching the insurance market, alongside an increase in £1bn-plus transactions, with several more such pension schemes intending to complete transactions this year," L&G said.

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