The world is “awash” with capital but British rules make it difficult for the money to be invested here, the boss of Legal & General has warned.
Investors poured a net £65.6bn into L&G’s fund management division, up from £27.4bn a year earlier, half-year results from the company showed. Just over half – £34.5bn – came from international clients.
“It’s a huge number,” said chief executive Nigel Wilson. “It’s why we need an investment-led recovery in the UK”, he added. “The world’s awash with capital.”
He cited Britain’s planning regulations as one barrier to investment, as well as the slow pace at which ministers have tried to overhaul the Solvency II insurance rules following Brexit.
First-half operating profit at L&G rose by a higher than expected 8% to £1.16bn, while adjusted pre-tax profits were up 4% at £1.37bn. Its solvency coverage ratio, a measure of an insurer’s balance sheet strength, stood at 212%, its highest ever level.
