Financial information on the segments to be presented is broken down where appropriate in order to better explain the factors of the Group`s results. For the year ended December 31, 2020, there were no material transfers of liabilities between levels 1, 2 and 3 (2019: no significant transfers). The release of LGR, LGIM – Workplace Savings and LGI UK and Other represents expected IFRS earnings for the year due to the difference between the conservative assumptions underlying IFRS liabilities and our best estimate of future experience for charitable pension plans, employment savings and protection activities in the UK. LGIM`s operating release also includes after-tax operating income from institutional and retail investment management. LGI`s operating release also includes dividends transferred by LGIA. The resumption of discontinued operations mainly reflects the resumption of expected after-tax gains under the risk transfer agreement with ReAssure Limited from mature savings activities. Non-controlling interests represent third-party interests in direct equity investments, including private placements, and real estate investment vehicles, which are consolidated in consolidated net income. I know past performance is no guarantee of future performance, but their 10-year track record is pretty impressive in my opinion. The rate test assumes an increase of 100 basis points and a decrease in the gross redemption yield of fixed income securities of 50 basis points, as well as the same change in real returns on variable securities. Valuation rates should be consistent with market returns and adjusted to allow for prudentness calculated in a manner consistent with the underlying results. Now that LGGNF has released its annual results, let`s look at the thesis to see if this is a purchase, as I indicated earlier, or if we need to re-evaluate the investment.
2019 was their record year. This year, they made two major deals that certainly helped increase the number. They made a partial buyout with the Rolls-Royce pension fund worth more than £4.6 billion for 33,000 pensioners and a £1 billion buyback for the Vickers Group pension scheme. 4. The offshore deferred tax liability consists entirely of U.S. balances as at December 31, 2020. The division contributed with an adjusted operating profit of £268 million, compared to £189 million the previous year. 2.
Discontinued operations include the results of the Mature Savings business, the sale of which closed on September 7, 2020. In 2019, discontinued operations also included the results of the General Insurance Division. On 24 June 2020, Legal & General Group Plc issued £500 million of 5.625% Restricted Perpetual Tier 1 Convertible Bonds. Tickets are refundable at par between 24 March 2031 and 24 September 2031 (the first reset date) and every 5 years after the first reset date. If not called, the September 24, 2031 coupon will be reset to zero at the current five-year benchmark yield plus 5.378%. In 2009, Legal & General Group Plc issued subordinated debt in the amount of 300 million. GBP with 10% date. The bonds are due at face value on July 23, 2021 and every five years thereafter. If not called, the coupon will be reset to the current five-year benchmark yield plus 9.325% per annum effective July 23, 2021. These bonds mature on July 23, 2041.
Deferred tax assets and liabilities are measured at the applicable tax rate at the time the temporary difference is expected to be reversed. In accordance with the requirements of IAS 12, the effects of the change in the tax rate have not been reflected in the deferred tax balances as at 31 December 2020 and will be recognised once it has been substantially approved by the UK Parliament. The estimated impact of the change in the tax rate would be an increase in the deferred tax payable of approximately GBP 50 million. In my last article on Legal & General Group Plc (OTCPK:LGGNF) from 27. In October last year, I concluded that despite the 50% increase in the share price since this stock began to be declared, there is still potential for further appreciation. With global assets under management expected to grow from $103 trillion in 2020 to $136 trillion by 2025, larger asset managers like LGGNY can be expected to become even bigger, while smaller ones will become even smaller. (2) As usual, adjustments from previous years relate to revisions to previous estimates. The Group has chosen accounting policies that adequately reflect net assets, financial position, results of operations and cash flows for a reporting period.
Accounting policies have been applied consistently for all financial periods presented, unless otherwise indicated. Canada`s Brookfield is perhaps the best comparison. It was founded, like LGGNF, more than 100 years ago, and while LGGNF started as a pure insurance company, BAM was an infrastructure investor. Lately, they are better known around the world for their large real estate investments. Its market capitalization is 87 billion USD. Common dividends paid during the year and charged to equity: 1. Basic earnings per share are calculated by dividing after-tax earnings by the weighted average number of common shares issued during the year, excluding own shares under employee regulations. This additional information on operating income (one of the Group`s key performance indicators) allows a more in-depth analysis of the results presented in accordance with IFRS and allows shareholders to better understand the underlying performance of the business over the year. During the year, the Group changed its accounting policy for universal life insurance and annuity liabilities arising from transactions of its U.S. subsidiaries, which were previously based on accepted actuarial policies that reflect U.S. GAAP. As of July 1, 2020, the Group will calculate these liabilities based on current information using the gross premium measurement method which corresponds to the recognition of similar revenues in other business segments.
The firm is one of Europe`s largest asset managers with £1.421 trillion in assets under management, up from £1.279 trillion at the end of 2020. LGR`s new key figures are presented on the basis of a long-term target portfolio. At the end of a given period, depending on the amount and timing of pension risk transfer (TRP) volumes, we may have drawn more or less on high-quality assets to support this activity. At year-end, the earnings effect of the difference between assets actually held (including alternative surplus investments, if applicable) and the composition of long-term assets is reflected in the investment spread. Dividend distributions to shareholders during the year – The Group has total obligations to other related parties of £1,207 million (2019: £1,213 million), of which £772 million was withdrawn at 31 December 2020 (2019: £749 million). All transactions between the Group and associated companies, joint ventures and other related parties during the year are carried out on commercial terms that are no more favourable than those generally available to the companies. 1. The repayment of capital and other reserves as at 31 December 2020 shall comprise share-based payments of £101 million, £43 million in foreign currency, repayment of principal of £17 million, cover reserves of £35 million and available-for-sale reserves of £2 million. At £1,154 million, the institutional division`s operating profit in 2021 was slightly lower than the previous year`s figure of £1,229 million. On 6 December 2017, the Group announced the sale of its mature savings business to ReAssure Limited (“ReAssure”) for £650 million.
