UK - Legal & General has allayed fears about its finances after making a £140m profits charge to boost its annuity reserves.
Improvements in the life expectancy of males are forcing insurers to shore up their reserves in their pensions business as they realise they will have to pay out on annuities for longer than they thought.
Some estimates had suggested that L&G – which raised £786m from investors in a surprise rights issue last September – could be forced to find up to £400m.
L&G has also disclosed that it increased annualised premiums by 13% to £906m last year and that its UK sales rose 14% to £811m.
It also announced an institutional fund management sales rise by 6% to £14bn in 2002.
L&G group chief executive David Prosser said: “We have had excellent support from trustees who continue to switch assets to an indexed core and active satellite structure.”
An unnamed London-based employer has been hit with a £350,000 fine from The Pensions Regulator (TPR) for failing to fully comply with its pension duties.
XPS Pensions has enhanced its fiduciary management selection service in order to help trustees through initial selection and mandatory re-tendering.
One in five defined benefit (DB) schemes are in The Pension Regulator's (TPR) weakest two categories, analysis by Hymans Robertson has revealed.
State Street Global Advisors (SSGA) has been selected as the first index manager for the Asset Management Exchange's (AMX) passive funds.