Legal & General stated its lifetime and retirement interest-only mortgage advances slumped 26% to £104m in the primary half of the yr, “because the market stays subdued as a results of larger rates of interest”.
The monetary providers agency added that its UK lifetime mortgage e-book got here in at £6.1bn in the primary six months of the yr 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 yr in the past, underpinned by again e-book earnings that included £150m of revenue throughout its annuity portfolio, the group stated in a monetary assertion.
The Bank of England is anticipated to drop the bottom charge by a quarter level from its 4.25% stage tomorrow, which might be the third lower this yr.
Markets anticipate one additional charge discount from the central financial institution in 2025.
L&G stated the transfer was a part of its new technique to promote non-strategic companies, including that the Cala disposal “diminished shareholders’ publicity to UK housebuilder volatility, whereas releasing each proceeds and administration’s time for reinvestment into our core propositions”.
The group stated its total core working revenue rose 6% to £859m in the interval, buoyed in half by a string of current UK pension threat transfers acquisitions.
Legal and General chief govt António Simões stated: “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 latest enterprise at low capital pressure.”
