L&G sees double-digit cash growth at half year, performance on track

LONDON (Reuters) -British insurer Legal & General expects to deliver double-digit growth in cash and capital generation in the first half of the year and its operating performance is on track, it said on Thursday.

L&G's solvency ratio, a key measure of capital strength, rose to 215% at June 30, from 187% at end-Dec 2021, the life insurer said in a trading update.

"Our year-to-date operating performance is in line with expectations, with cash and capital generation running slightly ahead of our five-year ambition and ROE (return on equity) at c. 20%," Chief Executive Nigel Wilson said.

Legal & General Investment Management, one of the biggest investors in the UK stock market, saw net external inflows of 50 billion pounds ($59.72 billion) in the first half, compared with flows of 26 billion pounds over the same period a year earlier.

L&G's shares have fallen more than 20% this year. Analysts at Jefferies in a recent note highlighted investor concern about credit risk in the insurer's fixed income portfolio.

L&G is due to publish first-half results on Aug 9.

($1 = 0.8373 pounds)

(Reporting by Kirstin Ridley and Carolyn Cohn, editing by Sinead Cruise)