When you
hide something, it's bound to come out. Some people will snoop around and
expose it, with both positive and negative implications.
Legal &
General might have sunk itself as analysts found that its capital buffers are
lower than its target solvency capital ratio of 169 per cent. While it
satisfies the insurer requirement of 100 per cent, it places itself on a weaker
spot as it did not hit JPMorgan's expectations of 180 per cent.
It said
"In our view, Legal & General has a higher risk balance sheet compared
to Standard Life and Aviva and thus a ratio lower that is less impressive to
us."
But then
again, even when you're profiting, if your downline isn't solid, the roots can
give out at any time and it can mean trouble.
According
to Legal & General Chief Executive NIgel Wilson:
"We
have a robust business model which has proved to be adept and resilient in
dealing with fiscal and regulatory changes in our sector.
"We are
planning for more global economic and market volatility and are well positioned
for continued pressure on pricing and changes."
Other
analysts, such as Hargreaves Lansdown's Steve Clayton pointed out that Legal
and General had rebased its dividends upwards, indicating only progress in the
near future.
