A.M. Best Comments on Legal & General Group Plc's Half-Year Results.OLDWICK, N.J. -- Following the release of Legal & General Group Plc's (L&G) (United Kingdom) half-year results, A.M. Best has commented that the group's ratings and those of its main operating entity, Legal & General Assurance Society Ltd., remain unaffected. L&G reported a strong 13% growth for worldwide new business for the first half of 2004 (compared to the same period in 2003), while operating profits Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. decreased by 20% to GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 292 million (USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 532 million) on an Achieved Profits Basis--growth of 10% on Modified mod·i·fy v. mod·i·fied, mod·i·fy·ing, mod·i·fies v.tr. 1. To change in form or character; alter. 2. Statutory Solvency The ability of an individual to pay his or her debts as they mature in the normal and ordinary course of business, or the financial condition of owning property of sufficient value to discharge all of one's debts. solvency n. basis to GBP 284 million (USD 518 million)--mainly impacted by the recently announced reserve strengthening. Nonetheless, A.M. Best stresses the maintenance of L&G's negative outlook as it assesses the impact of the company's apparent shift to unit-linked business, prospective lower bonus declarations from with-profits business and the potential for additional reserve strengthening. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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