Legal & General Jumps Today
The shares jump 5.5%
Investors have been waiting for it. This is a clear piece of good news from the London insurer. The shares jumped 5.5%.
Legal & General (LGEN) has delivered encouraging news from its flagship Institutional Retirement division, announcing it is on track to close the year as planned. The division expects to achieve £10.5B in PRT volumes by year-end and has reaffirmed its target of £50-65B for 2024-2028.
Notably, the cost of writing new policies, or new business strain, is projected to be significantly lower than expected—1% compared to the 4%. It frees up capital, part of which the company plans to return to shareholders through buybacks in 2025, subject to Board approval.
This guidance underscores the strength of Institutional Retirement, LGEN's largest division. However, the real transformation hinges on progress in Asset Management - please see my latest analysis. Without this progress, LGEN cannot transform itself.
Today’s update is the first in a series of promised deep dives into its three divisions. While we await the one on Asset Management, LGEN seems to be adopting a more engaging communication style—a welcome change.
Took a major position as well also on your recommendation.
Do we have confirmation that Mr Adler started work this week?
Wondering why it would not be easier for L&G to sign a JV deal with APO to originate high yielding private credit assets rather than build its own alt assets platform?
After all Marc Rowan wants 25% of everything and 100% of nothing”.
APO could keep 25% and L&G 75% of investment grade assets capturing a 2% spread.
Seems like a no-brainer.
L&G would then be off to the races!!!
Alexander, similar to Carsten I also established a position 2 weeks ago based upon your recommendation. I have LGGNY, (the ADR), with an average cost basis of $14.02. Looking good so far! I am looking forward to following your further analysis on Legal & General as you post it. Thanks!