Legal & General Share Discussion Threads

[bothdavis] 07/8/2020 11:27

No sorry.......need new exhaust!

[eggbaconandbubble] 07/8/2020 07:54

Headlamp? Anyone?

[damanko] 06/8/2020 23:08

Edmund,

Good Evening, good to see you on another thread (i.e. other than FORT).

I reckon L&G is okay, not over exposed to stuff going on at the moment, and gobbling up several (large) company pension funds.

I've been a holder for 15+ years, and I can see no reason to sell.


Buying price £1.11


Stay okay...,

d.

[edmundshaw] 06/8/2020 14:20

That is part of the hedging that life funds do, of course, to reduce risk...

[zho] 06/8/2020 13:55

There is a grim calculus for insurers handling coronavirus claims, laid bare by Legal & General’s half year results. It paid out £36m in life insurance claims to the families of those who sadly died from Covid-19 – but made a £32m gain from mortality, as it will pay out pensions for fewer years than expected as the elderly pass away......

[scepticalinvestor] 06/8/2020 13:34

payroll numbers better than expected

[its the oxman] 06/8/2020 09:25

Decent enough figures yesterday. Plenty of recovery potential and great to see div being paid. Could easily pop higher if wider market has any strength.

[scepticalinvestor] 05/8/2020 15:53

alls well that ends well

[williamcooper104] 05/8/2020 14:36

Average corporate bond rating as A - so high grade investment grade (note that there are almost no AAA corporates and not many AA) so an average of A is about as good as you are going to get (and actually going higher would expose you to greater sector concentration risk) There are a few nasties on the balance sheet - retail property - but on the whole it's a solid balance sheet and most of their property interests are in robust sectors

[zho] 05/8/2020 14:12

Broker comments at (not behind paywall)

[edmundshaw] 05/8/2020 12:19

"Anything yielding 7-8 is risky". Or mis-priced.

We are not getting three years of COVID-2 disruption, I am 95%+ sure. COVID-3 -4 or -5 or some other disaster is always possible (in any year), but with that there would realistically be no safe haven.

[williamcooper104] 05/8/2020 12:11

Needless to say all insurers are hyper levered Anything yielding 7-8 is risky I just think the chances of share price going x2 is greater than the chance of a 50 percent loss But if there is no vaccine if we have say three years of covid disruption then no question LG will tank and probably cut the divi

[williamcooper104] 05/8/2020 11:57

Read it - nothing alarming They have only £1bn of sub investment grade, minimal exposure to retail/energy The £10bn is a mark to market loss - doesn't mean much The amount of capital that you can use on the matching premium has been reduced by the regulator after some specialist buy our firms were getting most of their equity from this dubious source Besides to really make the matching premium work you need long duration credit assets - eg ground rent loans, Infrastucture debt - these assets are solid investment grade Lower rated corporate debt is almost always shorter duration

[scepticalinvestor] 05/8/2020 11:43

funny how often these Times pundits seem to get it wrong

[hollcat] 05/8/2020 10:50

You should read the paper by Dean Buckner - see hxxps://www.thetimes.co.uk/article/l-amp-g-sitting-on-10bn-of-bond-losses-s0gz9pxdf. The Solvency II matching adjustment rules only give credit for assets rated BBB or above, and we have started to see these credit losses coming through, where BBB assets have downgraded to junk. Widened credit spreads (but no downgrades) would be a loss for most companies but not for L&G. DYOR

[williamcooper104] 05/8/2020 10:11

And BBB debt is downgraded by a notch would not need to be sold

[williamcooper104] 05/8/2020 10:10

Sorry - BBB is not lowly rated debt

[scepticalinvestor] 05/8/2020 09:56

your comments prove you know very little abt the insrance market.

[pierre oreilly] 05/8/2020 09:55

Ponzi schemes are illegal fraud.

I'd be careful accusing lgen of fraud, even pseudo-anonymously on a bb. I'd edit that if I were you.

lgen are both legal and prudent, and they wouldn't have paid any divi if it wouldn't be prudent to do so.

Not sure why almost a billion profit is viewed as disappointing in these difficult times. It exceeded my expectations.

[scoble2] 05/8/2020 09:31

Amount: 4.93p
Ex-Dividend Date: Thursday August 13 2020
Pay Date: Thursday September 24 2020

[hollcat] 05/8/2020 09:26

Disappointing results announcement, and they glossed over the credit losses, of which I would expect to see significantly more in the 2nd half, especially if there is a second wave. Their Solvency ratio was only maintained because they raised £1bn of subordinated debt which because it is subordinated strangely improves their solvency ratio. L&G is a massively geared organisation with £25bn of low valued BBB debt in the annuity portfolio which if it downgraded one notch would need to be sold at depressed prices. If one-third of this BBB debt downgraded they would be "technically" insolvent. I am very surprised they maintained their dividend - doesn't feel prudent.

[waldo2020] 05/8/2020 09:02

In the current climate results are not that bad. Solvency coverage ratio up from 171% to 173% and divi maintained.

[pinstickerdan] 05/8/2020 08:58

L&G is proving to be very robust, in the circumstances the company is performing very well.

David Buik just commented that L&G is managing to maintain it's dividend against a background where FTSE100 has this year seen a 60% drop in dividends, and FTSE250 has seen an 80% drop in dividends. Dividends expected to drop 39% this year overall.