L&G to tap debt market after strong quarter

The life insurer said business in the three months to the end of March was broadly in line with 2019. All its businesses grew apart from its early-stage investment operation, which was hit by a halt to housebuilding.

L&G said it intended to issue debt to capitalise on low interest rates to raise funds for business growth. It did not say how much debt it would issue.

The FTSE 100 company bucked the trend for insurers cancelling dividends by saying in early April it would press ahead with its final payout for 2019. It did so despite the Bank of England making it clear it wanted insurance dividends cancelled during the Covid-19 crisis.

In Friday's trading update L&G did not mention its dividend but it stressed the strength of its business and its contribution to wider society.

L&G said it paid 96% of life insurance and critical illness claims in the first quarter - the same level as in 2019. It also said it had kept all its employees on at full pay and was speeding up its £20m sponsorship of Edinburgh university's research into elderly care. It is offering free accommodation for health service workers at build to rent sites.

Chief Executive Nigel Wilson said: "Legal & General's outstanding frontline staff have continued to help provide more certainty for our millions of insurance and pension customers who we recognise are often under pressure as a result of Covid-19. Our business remains robust and is performing broadly in line with the prior year despite tremendous volatility and disruption. Our current strength underpins our future focus."