LONDON, July 7 Reuters British insurer Legal General expects to deliver doubledigit growth in cash and capital generation in the first half of the year and its operating performance is on track, it said on Thursday.

LG39;s solvency ratio, a key measure of capital strength, rose to 215 at June 30, from 187 at endDec 2021, the life insurer said in a trading update.

Our yeartodate operating performance is in line with expectations, with cash and capital generation running slightly ahead of our fiveyear ambition and ROE return on equity at c. 20, Chief Executive Nigel Wilson said.

Legal General Investment Management, one of the biggest investors in the UK stock market, saw net external inflows of 50 billion pounds 59.72 billion in the first half, compared with flows of 26 billion pounds over the same period a year earlier.

LG39;s shares have fallen more than 20 this year. Analysts at Jefferies in a recent note highlighted investor concern about credit risk in the insurer39;s fixed income portfolio.

LG is due to publish firsthalf results on Aug 9.

1 0.8373 pounds

Reporting by Kirstin Ridley and Carolyn Cohn, editing by Sinead Cruise

Source Reuters