UK insurer Legal and General’s regulatory capital ratio dropped over the first half of this year to 171%, from 188% at end-2018. Year-on-year, it has fallen by 22 percentage points.
Tumbling interest rates were blamed for bumping up the firm’s solvency capital requirement (SCR), the denominator of its Solvency II ratio. This increased to £8.2 billion ($10 billion), from £7.9 billion at end-2018.
Own-funds, the numerator for the Solvency II ratio, decreased over the same period to £14.2