Legal and General Rating

Approximately 98% Investment Grade PortfolioLegal & General America operating companies are among the most financially sound life insurers. Our investment portfolio is positioned prudently and prudently managed. It is highly liquid and well-diversified with approximately 98% investment grade corporate bonds and highly rated structured securities.11.5 million U.S. clientsThat`s the number of policyholders who rely on us to provide financial security for the people who have so carefully protected them.1New coverage ranks us #2Legal & General America is the second largest provider of term life insurance in the United States. Spend more than $57 billion on new coverage in 2020. In addition, we issued approximately $1.6 billion in new pensions to more than 26,000 retirees in 2020. $282 billion coverage growth in KraftLegal & General America; Our existing life insurance policy is over $782 billion.1 More than $6.8 billion in assetsAnother proof of our financial strength is that Legal & General America`s operating companies have assets of more than $6.8 billion at the end of 2020. 3Capitalization is more than double the industry averageA company`s capitalization is particularly significant because it measures a company`s creditworthiness. It evaluates the amount of a company`s assets that are available to settle future liabilities; such as current and future benefits for policyholders.

We are particularly strong on this basis. The pure capital ratio measures the cushion a company has against a loss in the value of its assets. Our pure capital ratio was 17.8%, above the industry average of 12.1%.4 Fitch believes that Legal & General`s business profile is favourable compared to other life insurance companies in the UK. The rating also confirms the strong business profile, financial performance, investment and asset risk strategy and product returns in foreign markets. The ratings reflect L&G`s strong balance sheet, which AM Best considers to be very strong, as well as the company`s strong operating performance, favorable business profile and appropriate risk management. The ratings of LGAS, Banner Life and William Penn reflect their strategic importance to L&G and its integration into the Group. The assessment of L&G`s balance sheet strength is underpinned by Best`s risk-adjusted capitalization, as measured by Best`s capital adequacy ratio (BCAR) at the highest level. The valuation also takes into account the Group`s moderate leverage ratio, which is expected to decrease further due to internal capital generation, and good interest coverage. A partially opposite rating factor is L&G`s exposure to potential valuation volatility due to the high proportion of tangible assets in the Group`s investment portfolio, although AM Best notes that these assets are closely aligned with the Group`s liabilities.

AM Best is a global rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company operates in more than 100 countries and has regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, see While some states have laws to provide coverage to customers of insurance companies that go bankrupt, it`s always best to choose a company that you think will stand the test of time. A well-rated life insurance company is able to meet its obligations to its policyholders. These ratings are indicators of a company`s financial strength and performance. AA ratings indicate a very low expectation of suspended or interrupted payments and indicate a very strong ability to meet policyholders` contractual obligations. This capability is not particularly sensitive to foreseeable events.

This press release refers to ratings published on AM Best`s website. All rating information relating to the publication and related disclosures, including details of the office responsible for issuing each rating mentioned in this press release, is available on AM Best`s recent rating activity website. For more information on the use and limitations of ratings, see Best`s Guide to Credit Ratings. For more information on the appropriate use of Best credit ratings, Best performance reviews, Best preliminary credit ratings, and AM Best press releases, please see the Guide to Proper Use of Best Ratings and Ratings. S&P`s has been assessing the financial strength of insurance companies for more than 40 years. They confirmed the AA (Very Strong) rating, which we share with our parent company. Fitch Ratings has confirmed the Insurer Financial Strength (IFS) rating to AA- (Very Strong). LONDON–(BUSINESS WIRE)–Am Best has confirmed the long-term issuer credit rating (Long-Term ICR) of „A” (Excellent) of the non-operational holding company Legal & General Group Plc (L&G) (UK). At the same time, AM Best confirmed the financial strength ratings of A+ (superior) and the long-term KPIs of „aa-” (superior) of L&G`s rated subsidiaries: Legal and General Assurance Society Limited (LGAS) (UK); Banner Life Insurance Company (Banner Life) (Frederick, MD); and William Penn Life Insurance Company of New York (William Penn) (Valley Stream, NY).

The outlook for these ratings is stable. A COMDEX score is a composition of all the financial ratings a company has received, from 1 to 100. Few life insurance companies score as high as ours. L&G delivered a strong operating performance, with a weighted average return on equity (ROE) of 20.6% (as calculated by AM Best) over five years (2017-2021). Results were supported by the good development of the fixed income business and benefited from stable revenues in Asset Management. In 2021, L&G posted a strong pre-tax profit of £2.63 billion, up 75.3% from £1.50 billion in 2020. AM Best expects L&G`s operating performance to remain strong, supported by the Group`s strong market positions in its flagship products in the UK and US, growth in the pension risk transfer business and prudent management of its investment portfolio with close alignment of liabilities. „Our journey into the future remains focused on protection solutions for all Americans. Expanding digital capabilities, distribution partnerships and new product innovations will be critical to our success as we help families secure their financial future. Low-cost term life insurance is Legal and General`s main advantage. Not only do they offer coverage for healthy people at an extremely low price, but they can also offer below-average rates for people with diseases such as diabetes. Founded in 1836, Legal & General is one of the UK`s leading financial services groups and a major global investor with over £1.4 trillion in assets under management*, a third of which is international.

We also offer powerful asset creation capabilities. Together, they underpin our industry-leading pension and security solutions: we are a leading international player in pension transfer, life insurance in the UK and the US, and occupational pensions and retirement income in the UK. Through inclusive capitalism, we want to build a better society by investing in long-term assets that benefit everyone.