Legal & General Share Discussion Threads

[richie1218] 25/4/2024 13:14

A bit of old news but maybe relevant to the next share price movement up or down ...

Legal and General shares down as strategic review announced
The insurer aims to unveil its plans at the summer capital markets day
07 March 2024

Legal and General posted what management described as “resilientR21; full-year results as its new boss said he was undertaking a strategic review of the business. New chief executive António Simões said it was the right time to “take a fresh perspective,” build the insurer’s track record and “set out a vision for profitable and sustainable growth.” Simões, who was previously at Spanish banking giant Santander, says he will outline the company’s new plans and strategy at the upcoming capital markets event on 12 June.

‘Challenging markets’ for the insurer
Meanwhile, he said that the company, which owns the UK’s biggest asset management business as well as its pensions and insurance divisions, had performed well in a difficult year. “We are on course to achieve our five-year targets, and demonstrated resilience in challenging markets to achieve record new business volumes in pension risk transfer, UK annuities and US protection, increasing our store of future profit,” Simões told investors. “Our international assets under management and alternative assets portfolio continue to grow, as does our position in the UK defined contribution pensions market.”

Operating profit remained flat at £1.67 billion for the full year 2023 (£1.66 billion in 2022). Pre-tax profits, excluding longevity and internal pension scheme accounting, fell to £561 million from £1 billion last year. This was due to the lower than expected valuation of property assets, the closure of Legal and General’s Modular Homes business and the write-down of its investment in Onto.

However, the insurer saw record volumes across its businesses, with £13.7 billion of institutional annuities (£10.5bn retained premium), £1.4 billion of individual annuities and $175m of US protection new business premium. Meanwhile, new business CSM (contractual service margin – the profit yet to be released from insurance contracts) contributed £1.2 billion (2022: £0.9 billion) and CSM grew 9% to £13 billion (£11.9 billion in 2022).
Strategic review: Nothing ruled out
Meanwhile, in terms of the strategic review, Simões would not be drawn on what he is planning but said he is “looking at everything” including the company’s house building division Cala Homes, although he described it as a “strong franchise”.

Legal & General’s Solvency II coverage ratio - essentially its financial stress test - dipped slightly but remained relatively strong at 224% (compared with 236% in 2022). The shares fell 2% on the day of the results.

Analysts at broker RBC Capital Markets described the figures as “mixed”. However, those at broker JP Morgan Chase think the shares could reach 295p and have an “overweight221; recommendation.

Down 8% this year, at 244p, the shares are trading some way off their three-year highs of 299.6p seen in April 2021. They may also be worth watching for the 8% yield.

Past performance is not a guide to future performance.

[yump] 25/4/2024 11:58

I get the impression that if the charts are showing a clearly bottomed out price and then a reasonably stable rise, then the share price is dropping by the div amount when ex div.

Phnx and Mng charts don’t show conclusive bottoms, lgen amd lloy have been off bottom for a while, AV has a pretty healthy chart already.

[rongetsrich] 25/4/2024 11:07

GARY, we can all choose a moment in time to call a loss, but I've made the dividend and I've spent it. Don't just snapshot because anyone can call a moment of their choosing. Those that sold yesterday at the right time were already 4p better off, then when it dropped immediately by over 15p... I could go on, but a closed mind is an empty wallet in good time. The maths is easy!Did I get in at a good price with LGEN, nope! I took my profit to MNG which is on its backside for a similar no reason.

[heialex1] 25/4/2024 10:52

Great yield on this stock. Ex-dividend dates often great days to accumulate for the long run

[williamcooper104] 25/4/2024 10:47

Problem is that over the long term you'll get about half of the calls right and half wrong But every time you'll get hit with stamp duty (CFDs avoid that but they have heavier dealing fees and have own complications) so it's an almost guaranteed long term loss

[garycook] 25/4/2024 10:04

Woody, Enjoy the HSBC dividend being paid today. If you own it.

[williamcooper104] 25/4/2024 09:58

And we are up on the ex div day My broker shows my position inclusive of the divi accrual which is helpful

[garycook] 25/4/2024 09:57

tuftymatt,You made the correct decision I believe. I have never Sold a share before XD. Like Woodhawk says. Just pure gambling !

[tornado12] 25/4/2024 09:56

Like you Tufty, I didn’t add here but added again in PHNX … will add here when it really reaches sub 230p in the next months GLA

[woodhawk] 25/4/2024 09:55

Garycook, they're all a bargain at these levels of prices anyway. How often do you get companies as robust as these with near double-digit yields?

[tuftymatt] 25/4/2024 09:53

Yes it's good to see it's played out that way Gary so far.

Must admit to having been tempted to chance it but glad I didn't. Now thinking about when to add ahead of the next divi!!

Good luck all 👍🏻

[garycook] 25/4/2024 09:49

Anyone who Sold before XD, are now out of pocket atm, if they wanted to buy back LGEN. Not been hit as hard as AV,MNG,and PHNX.

[markth] 25/4/2024 09:43

Is the return from compounding of the divvy not more than what you get from divvy dodging?

[rongetsrich] 25/4/2024 09:01

Not enough drop for me, bought more AV. and MNG.

[theinquisitiveone] 25/4/2024 08:56

LOL, no kidding? I don't think anyone else had noticed it was XD today :-))

[this_is_me] 25/4/2024 08:30

Gone ex dividend of 14.63p

[tornado12] 25/4/2024 07:36

FTSE Futures predict flat opening, price below 230p is a good top up with forward yield of 9,3% assuming the 5% increase in 2024. That is a good risk vs reward opportunity and is my biggest portion of porfolio. It will be interesting how things will change with new CEO, as I suspect there are lots of options to improve growth in PRT and AUM. Maybe this will be the spark to push forward the share price . GLA

[cwa1] 25/4/2024 07:33

US futures down a touch, so it probably means at least the dividend and a bit off the share price Depends on how the day goes obviously but will be interesting to see how it ends up

[devonbeachbum] 25/4/2024 07:23

I'd happily take that Ron. Anything under 235 for me means I've done this right. Suspecting it might be near that figure. Very tempted to sit it out for the next few weeks tho. Feel that we are one Iranian missile away from sub 220.

[skinny] 25/4/2024 07:00

Ron - probably never.

[jubberjim] 25/4/2024 06:09

Holding on to what I've picked up

Lloyds move yesterday enabled me to pick up some funds but in light of the upcoming local elections and the possible meltdown of the local councils will desist from any investments until after the results are known.
In the greater scheme of things shouldn't make one iota of a difference but in this topsy turvy market feel safest bet is to keep some cash back

Will be looking to see if LGEN can buck the trend.

I hope so but I have my doubts.

Good luck all

[rongetsrich] 25/4/2024 06:08

Opening price? I'm going 232.

[rongetsrich] 24/4/2024 19:07

It’s on his terms or it’s wrong. I suspect there are more here than let on that are doing this now.
I’ll be in the gym at market opening, so I’m placing a cheeky buy limit of 223.

[devonbeachbum] 24/4/2024 18:41

Not sure why you are so bitter about this Woodhawk. I come to these boards to get ideas and opinions from all quarters. Can only be a good thing IMO. And divi dodging seems another strategy which may work in the right circumstances. Personally, I much prefer the method of time in the market and reinvestment as per your approach. But in my own case I was able to sell at a small profit and will look to re enter if the price falls enough which I think it might. It seems a good way to reduce your average without throwing a load more money at it. Whether I'll be better off doing this remains to be seen. But as others have pointed out AV, PHNX, and MNG fell a lot. Says to me that there are a lot of people using a divi hunting strategy for the high yields on offer. Which means the contrarian approach of buying after the sell off and taking advantage may work also. From my own research, the re entry point doesn't immediately seem to be Ex divi day, but between a week and three weeks later. That's the case in the three others and LGEN'S historical finals as well. Plus you get interest and time on your side while waiting for the right price. Not sure if I'd do this on a regular basis, but with FTSE at top mark it appeals this time.

[rongetsrich] 24/4/2024 18:27

Spot on, are you a gambler, and have you considered a GIA or are you wrapped? Seems Woody cannot understand that an ISA or a SIPP are absolutely perfect for making easy money!