Mortality rate leads insurer to cash release

Legal & General is to log higher earnings this year because customers are dying earlier than expected.

The insurer said it could end up releasing more cash from its reserves, which are meant to help pay annuity customers.

It comes after a review of data and longevity trends found “evidence of higher-thanexpected mortality.”

People dying early means cash set aside for future pension payments can be released.

L&G said it now expects a £300 million to £400m release of cash reserves, which will bolster its full-year results.