Pound hits two-week high as Kwasi Kwarteng outlines debt plan – live updates

PInsurance and insurance giant Legal & General said its balance sheet remained strong and full-year profits were on track despite turmoil in the mini-budget market that left some pension funds on the brink. ‘collapse.

The FTSE 100 group said the market chaos that sent the pound plummeting to record lows against the dollar and boosted the yield on gilts had caused “challenges” for pension fund clients and counterparties to its business LGIM UK Liability Driven Investment (LDI).

But he said the Bank of England’s emergency purchase program had ‘helped ease the pressure on our customers’.

He added: “We continue to work closely with them to achieve appropriate levels of coverage in their portfolios.”

L&G said its annuity portfolio also had no problems meeting collateral calls and said it “wasn’t forced to sell gilts or bonds.”

The group said it expects to generate operating profit growth in 2022 in line with the 8% growth seen in the first half, while capital generation is expected to reach £1.8bn.

Sir Nigel Wilson, Managing Director of Legal & General, said:

Our business is resilient and we are on track to deliver good growth in key financial indicators for the full year 2022.

Our balance sheet and liquidity position remain strong and our operations are very cash-generating.

We continue to work closely with our clients to support them during this period of heightened market volatility.

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John A. Bogar