L&G publishes annuity bond portfolio holdings


Legal & General has moved to allay investor concerns about the bond portfolio supporting its annuity business by publishing details of its holdings.

The insurer has today published provisional, unaudited analysis of its annuity bond portfolio as at 31 December “following a number of enquiries from sell side analysts and investors”.

The data (below) shows the bond portfolio supporting its annuity business was worth around £39bn at the end of 2015, compared to £40.7bn a year earlier.

The portfolio has a 5.5 per cent exposure to the troubled oil and gas sectors, although only 0.7 per cent (£266m) is sub-investment grade.

It remains unclear what sparked investor queries about the make-up of the portfolio.

Screen Shot 2016-02-09 at 08.13.13
Screen Shot 2016-02-09 at 08.13.52