L&G is to launch a GBP-denominated benchmark Tier 2 subordinated debt issuance, taking advantage of current favourable market conditions.
The group will confirm the amount of debt raised after the issuance has settled.
LGRI, the firm’s institutional retirement business has transacted £8.5bn of global Pension Risk Transfer (PRT) to 31 October 2019. This includes a further £1.2bn of UK PRT and a further $0.6bn of US PRT (£0.5bn) written since HY 2019.
The financial metrics and Solvency II capital strain of these deals are in line with previous transactions.
The group estimates its year-end Solvency ratio will be in a range of 171% to 176% (H1 2019: 171%). This estimate does not include the benchmark debt issuance, but does include capital we expect to deploy on new business before year-end. It assumes unchanged market conditions to 31 December 2019.