Financial Times FT.com

General fears make L&G’s predicament no surprise

By Neil Hume

Published: February 20 2009 20:31 | Last updated: February 20 2009 20:31

Tim Breedon must be wondering why he bothered. Last week, the chief executive of Legal and General moved to address concerns about the life assurer’s capital position after rumours of credit losses and a rights issue had swirled around the market.

He said L&G had revalued its corporate bonds portfolio against the assumption that defaults would rise to levels more extreme than those seen during the Depression-era and added £650m to its reserves.

You have viewed your allowance of free articles. If you wish to view more, click the button below.

Read this