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L&G puts on a show of strength

Legal & General has published details of its realistic balance sheet revealing a risk capital margin covered nearly five times by its capital.

The realistic balance sheet for 2003 shows total assets of £18.6bn and liabilities of £17.6bn, leaving a with-profits estate of more than £1bn. Its total risk capital margin is £960m, leaving an excess over the RCM of £70m. Guarantees and option costs account for only 5 per cent of asset shares and L&G has £4.6bn in society capital to cover its RCM by 4.7 times.

L&G says its financial position means it has considerable scope for management action and it intends to operate the with-profits part of its long-term fund without external support.

Hargreaves Lansdown head of pensions research Tom McPhail says the asset mix of the with-profits fund is still very strong, with 51 per cent in UK and overseas equities and 18 per cent in property.


Charlotte Square Fof puts on vest

Investment boutique Charlotte Square has launched a fund of funds that invests only in portfolios in which the manager has placed substantial amount of his or her own money. The vested interest performance fund invests in around 10 unit trusts, Oeics and hedge funds in which the manager has placed a seven figure sum. Scottish […]

Unum first to lift HIV exclusion

UnumProvident is removing the HIV/Aids exclusion on group income protection policies in a move it claims will make it unique in the marketplace. All new quotations will automatically include HIV/Aids cover while existing policyholders will have the cover included at their next rate review. The exclusion can only currently be lifted if clients pay an […]

Pegrum to leave Insight for Cazenove

Star manager Neil Pegrum is leaving Insight Investments just over a year after he joined, departing to Cazenove which is relaunching its UK focus fund for him to run. Pegrum arrived at Insight from M&G in January last year, taking control of its UK dynamic and UK discretionary funds. He will be replaced with immediate […]

BBB chief Lockyer says he has saved the industry millions

Berkeley Berry Birch was forced to dump the liabilities of its subsidiary because another round of misselling claims would have brought down the whole group, says chairman and chief executive Cliff Lockyer. Defending BBB&#39s controversial decision to leave the liabilities of Berry Birch & Noble Financial Services in a wound-up company, Lockyer says that the […]

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Guide: how to… communicate with your pension members

Effective communication of your pension scheme is a large part of getting auto-enrolment right. Delivering the same message to all employees is not necessarily the way to go. To assist you with the communication of your pension scheme, we have provided some key areas to think about, such as:

  • What to consider when segmenting your workforce
  • How to communicate to pension scheme members at the right time in their member lifecycle
  • What topics you should be discussing with your pension members
  • The new pension freedoms and the importance of communicating them


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