Legal & General Share Discussion Threads

[williamcooper104] 29/3/2021 12:22

The development yield on single family rental developments is likely to be c6-7, which gives a huge spread over what LGEN pays out on its annuities/pension buy out assets

[williamcooper104] 29/3/2021 12:20

L&G hiring people for greater push into SFR (single family rental - or rather building normal, non apartment, family homes) Again showing how what other insurers saw as a problem/capital drag in the annuity book, LGEN are building a whole strategy around Also works very well with third party pension fund clients

[mo123] 29/3/2021 12:04

Berenberg sees lots of opportunities for increased M&A
activity in the insurance space as “companies are looking to put
capital to work and take advantage of undervalued or distressed
assets,” it said.

Even if we have actually seen relatively few transactions so
far, “a rise in interest rates, if it increases deal valuations,
could potentially lead to more deals, and this would boost the
ROE and the capital flexibility of sellers,” Berenberg analysts
argue.

Looking at the bigger picture, Berenberg sees U.S. yields
rising to 2% by mid-year and to 2.5% by end 2021,
with 10-year Bund yield at -0.1% by mid-2021 and at
0.1% at the end of this year.

This scenario will send solvency across European and UK
insurers covered by Berenberg to 210%, up 11.4 ppt.

Higher yields will also benefit reinvestment rates, with the
greatest beneficiaries the London market names and reinsurers.

[williamcooper104] 26/3/2021 15:18

Interesting that with Apollo merging with Athene they're creating a US version of L&G (though with far better paid staff of course)

[williamcooper104] 26/3/2021 11:10

Quality management with a great strategy Looked again at M&G which is undeniably cheap and still passing as I prefer the clear strategy of both L&G and PHNX The interview all speaks to how there's a considerable amount of growth potential here which we all know is still not priced for in current sp

[panshanger1] 26/3/2021 10:56

Dry is good in this world !!I too rate the CEO Never forget either that when the heat was on ( they looked after their shareholders )and paid the dividend

[10acious] 26/3/2021 10:40

Thanks for posting that.I thought he came across well, enthusiastic and very positive.

[mo123] 26/3/2021 09:11

Bit dry, CEO of LG getting interviewed.

[adelwire2] 22/3/2021 23:09

Dividend coming soon

[sd235] 22/3/2021 19:42

Legal and general High and low June 2019 to June 2020
Low 138.0p
High 324.70
Long way to go to get to previous high

[sd235] 22/3/2021 19:41

Legal and general High and low June 2019 to June 2020
Low 138.0p
High 324.70
Long way to go to get to previous high

[deadly] 22/3/2021 16:43

Big drop these last few days after breaking highs and good results recently. Seems a bargain again with XD soon.

[skinny] 12/3/2021 15:28

12+ month high @293.50p

[unastubbs] 12/3/2021 13:14

same, ta vm wc104

[spcecks] 12/3/2021 12:13

Williamcopper104 Thanks for posting the article on Lgen.

[chiefbrody] 12/3/2021 12:00

Needs an afternoon fall as i'll be adding Monday lol.

[actybod] 12/3/2021 11:50

Wants to hit 300 now - wonder how many have been caught by the rise. I have been but in a pleasant way. Holding for divi.

[williamcooper104] 12/3/2021 10:16

It does - divi yield of 4.75 to 5.5 range looks about where we should (should of course doesn't mean will) get to

[panshanger1] 12/3/2021 10:09

Market looks like it's re- rating this share now

[williamcooper104] 12/3/2021 09:17

That's Questor in the Telegraph

[williamcooper104] 12/3/2021 09:17

For those schemes slowly winding down, trustees increasingly use the kind of de-risking strategies LGIM provides. Others schemes attempt to offload legacy pensions altogether, either through a buy-in or buyout of benefits. In exchange for a chunky premium, insurance companies meet the cost of providing these inflation-linked pensions until the last member dies. L&G is one of the market leaders, both in Britain and globally, and despite schemes having closed decades ago in many cases, there is still plenty of business to be had. Operating profits rose 10pc to £1.2bn, a majority of L&G's overall profits.The consumer facing retirement business also saw near double-digit growth in 2020. While its bread and butter annuities will never again sell in the volumes prior to the 2015 "pension freedom" reforms, the take-up of lifetime mortgages should offset this over time as more people unlock the enormous unrealised capital growth in British property values.Despite the clear underlying strength of the business, it remains Questor's view that L&G is chronically undervalued. A dividend yield of more than 6pc suggests the market is worried about the sustainability of payouts but there are no obvious reasons why shareholders will not continue to receive their income.As with most British firms, the market wrote down L&G significantly after the Brexit vote and again when the scale of the pandemic became evident in March last year. Neither event should have been a reason to sell out of a strong, diversified company. For income investors there is a lot to like. We can only hope the firm doesn't find itself starved of competition from other income stocks.Questor says: holdTicker: LGEN

[williamcooper104] 12/3/2021 09:17

For income investors the best advice for the past 12 months has been "turn away now". The Bank of England effectively barred banks from paying shareholders, while firms in other sectors followed the herd.Legal & General, a long-term member of Questor's Income Portfolio, was one of the few exceptions. It went ahead with its planned dividend in June 2020, meaning the annual dividend totalled 17.57p, flat on 2019 but up by just over 30pc on five years ago.Yet the pensions and investment giant has not escaped the pandemic unscathed. Pre-tax profits fell in 2020 by 15pc to £1.8bn, the annual report published this week revealed. Of this, the company estimated the pandemic wiped off £228m of profits.Of its five divisions, the main casualties were L&G Capital, the group's investment vehicle, and the insurance business. Capital, which invests principally in new-build homes, start-ups and other "alternative" assets, suffered from the housing market freeze in the first lockdown.Meanwhile L&G Insurance saw profits tumble by 40pc, reflecting the abnormally high number of deaths caused by Covid, particularly in its American business where it is more exposed. An extra £110m has been set aside to cover increased claims in 2021.Both those setbacks are likely to be one-offs and in any case have been largely offset by strong performance in the other three business areas.Questor agrees with management, which believes the group is well placed to capitalise on the ageing demographics of, in particular, Europe and America. Despite the pandemic, populations are on the whole living longer and so there is a corresponding need for retirement income for longer periods. • Sign up to our Business Briefing newsletter for a snapshot of the day's biggest business stories • Read Questor's rules of investment before you follow our tipsThrough LGIM, the investment management arm, there is exposure to the vast sums now being poured into defined contribution pensions since the launch of near compulsory workplace pensions in 2012. L&G not only offers a "mastertrust" to replace the thousands of individual company policies that were the bedrock of the old system of paternalistic employers, but provides the underlying investments.Like others it is racing to gain a foothold in ESG strategies as younger investors take a more keen interest in what happens to their money. Older style defined-benefit plans may be all but extinct in the private sector but the legacy of decades of benefit entitlement means there is trillions of pounds of liabilities still held by corporates.

[tornado12] 11/3/2021 12:41

I have also a very big stake in LGEN with focus on the Dividend returns. Their strategy and deliverables have been excellent in last 5 years even with the COVID disruption. The return is still very good at todays price and for me for income source it remains one of the stella opportunities in FTSE100. I dont see many others close to this also considering the medium term divi coverage. It was also extremely encouraging to see their AUMs increasing again last year. I am a firm long termer and will continue to invest while their future prospects for growth continue to be positive

[panshanger1] 11/3/2021 12:05

Encouraging to see this moving up ( post results ) on a bad day for financials