Legal & General profits soar as UK life expectancy stalls – Telegraph.co.uk

Legal & General has released millions of pounds it had put aside for pension payments after the rise in life expectancy stalled for the first time in 100 years

The average age of death has been increasing each year since the First World War, but recently slowed due to an increase in dementia cases, growing pressure on health services, rising social inequality and unhealthy lifestyles. 

Having reviewed UK pensioners’ mortality rates, Legal & General said that it had released £126m in reserves which would have been used for customers’ pensions. 

“Death and taxes are the only two things certain in life, and the UK life insurance sector is benefiting from longevity trends not being as onerous as once expected,” Barclays’ analyst Alan Devlin said, adding the insurer could release a further £250m in the next year and a half depending on future reviews into life expectancy.  

The group saw its pre-tax profits rocket 41pc to £1.2bn in the six months to June 30, boosted by a 40pc jump in profits within its retirement unit to £566m. 

Legal & General profits soar as UK life expectancy stalls – Telegraph.co.uk