Capital and Cash Flow Pres.
Legal & General Group PLC
15 November 2006
LEGAL & GENERAL GROUP PLC: CAPITAL AND CASH FLOW PRESENTATION
Stock Exchange Release
15 November 2006
CAPITAL STRENGTH, SHAREHOLDER VALUE
Legal & General today presents its approach to the management of Capital and
Cash Flow. The meeting is the second of a series of presentations for investors
and analysts on strategic aspects of the Company's business, and includes the
initial conclusions of a wide-ranging review of the Company's capital position
announced last March.
Group Chief Executive, Tim Breedon, said:
'Over the last ten years we have managed our capital effectively, delivering
rapid and profitable business growth whilst rewarding shareholders with
consistent real increases in the dividend across the cycle. The current review
addresses the future quantum and structure of our capital base. Going forward we
will have in place a review mechanism which enables us to conduct a regular
assessment of capital relative to business requirements. That will enable us to
release surplus capital should that situation arise. As at today's date, we
estimate that we hold around £1bn of excess capital, largely the result of
recent increases in value of the substantial equity and property component of
funds invested on behalf of shareholders. As we achieve greater clarity from
current regulatory and taxation consultations, we will put the appropriate
structure in place to enable this to form the basis of a return to shareholders
over the coming years.'
The Company's assessment of its capital position takes account of its continuing
commitment to a strong balance sheet and financial strength rating. These will
continue to be key strategic differentiators. Legal & General's assessment also
factors in assumptions about the continued profitable growth of its UK business,
and has been subjected to rigorous stress testing.
The Company plans to realign its capital structure to reflect changed regulatory
and market conditions. Planned changes to its capital structure include
establishing a new company to assume the pension and annuity business
liabilities of Legal & General Assurance Society within the current financial
year subject to regulatory approval.
Ends
Note:
There will be a live, listen only, teleconference link to the presentation. UK
participants should dial 0800 528 6732. Those dialling from overseas should call
+44 (0) 1452 562 249. Please ask for the 'Capital and Cash Flow Presentation'
and provide your full name and organisation as well as the conference ID number
- 1295158.
The presentation slides will be available at:
http://investor.legalandgeneral.com/presentations.cfm
An audio-cast of the presentation will be available later this evening at the
same web address.
Enquiries to:
Investors:
Jonathan Maddock, Head of Investor Relations 020 7528 6298
Nicola Marshall, Investor Relations Manager 020 7528 6263
Media:
John Morgan, Media Relations Director 020 7528 6213
This information is provided by RNS
The company news service from the London Stock Exchange
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