Legal and General (L&G) have received an ‘AA-‘ rating for Insurer Financial Strength (IFS), Fitch ratings said today.
Other ratings which the company received included an ‘A’ issuer default rating and a ‘BBB’ for subordinated debt rating.
In their press release, Fitch said that the ratings reflect L&G’s “robust capital position and strong franchise in the UK as well as solid liquidity and operating cash generation.”
Fitch also outlined L&G’s consistent performance despite adverse market conditions in recent years as factors in their decision.
L&G announced in October 2011 that it had entered into a bulk annuity transaction worth GBP1.1bn and Clara Hughes, Senior Director in Fitch’s Insurance team, said the size of this deal was a promising sign for L&G.
“The average deal size written by the group between October 2010 and September 2011 was under GBP10m. L&G has 25 years experience writing annuity business, and continues to be a strong participant in the market.”
