Legal & General mentioned its lifetime and retirement interest-only mortgage advances slumped 26% to £104m in the primary half of the 12 months, “because the market stays subdued because of greater rates of interest”.
The monetary providers agency added that its UK lifetime mortgage ebook got here in at £6.1bn in the primary six months of the 12 months in contrast to 12 months in the past, accounting for 7% of the group’s £84.6bn portfolio of belongings, which incorporates traded credit score merchandise and direct investments.
Its institutional retirement working revenue lifted 11% to £618m from a 12 months in the past, underpinned by again ebook earnings that included £150m of revenue throughout its annuity portfolio, the group mentioned in a monetary assertion.
The Bank of England is anticipated to drop the bottom charge by 1 / 4 level from its 4.25% degree tomorrow, which might be the third reduce this 12 months.
Markets anticipate one additional charge discount from the central financial institution in 2025.
The monetary providers group bought UK housebuilder Cala Homes for £1.4bn to Ferguson Bidco Limited, a car owned by funding funds Sixth Street Partners and Patron Capital, final September.
L&G mentioned the transfer was a part of its new technique to promote non-strategic companies, including that the Cala disposal “decreased shareholders’ publicity to UK housebuilder volatility, whereas releasing each proceeds and administration’s time for reinvestment into our core propositions”.
The group mentioned its total core working revenue rose 6% to £859m in the interval, buoyed in half by a string of latest UK pension threat transfers acquisitions.
Legal and General chief govt António Simões (pictured, middle) mentioned: “We are rising and benefiting from the synergies between our three companies.
“Institutional retirement working revenue is up double digits, and we’ve got written over £5bn of recent enterprise at low capital pressure.”
