20:36 11/12/2014 L&G Buy Nomura in Todays Guardian
Legal & General is leading the FTSE 100 after a positive note from Nomura and the results of a regulatory study into the annuity market.


The Financial Conduct Authority proposed changes to the market, saying competition was not working to give customers the best deal. But with this year’s Budget announcement that there should no longer be a requirement to buy an annuity, the FCA said people will get more choice, and its study found no widespread evidence of mis-selling.

Meanwhile Nomura raised its rating on L&G - up 3.9p at 245.2p - from neutral to buy, saying:

L&G was a relative early mover in focusing on cash, which was precipitated by the financial crises and a consequent cut in the dividend. Since 2009, L&G has increased the dividend by 25% per annum. We believe L&G is well placed to carry on this trend.

We also believe the market is under-appreciating the strong operational momentum at the group. We believe L&G’s market-leading position in bulk annuities is a differentiator, where we see strong growth. Meanwhile, other segments should also see good growth such as protection and L&G Capital, while Legal & General Investment Management should remain stable. By Chicken Lips
7:54 06/11/2014 Re: Blimey!

"the change in personal annuities isn't going to have as big an effect as might have been feared."

LGEN seem to be doing brilliantly in hoovering up the buyouts of closed defined benefit schemes. I don't have a handle on how profitable that is likely to be for LGEN down the road, or how much it's going to save the companies whose pension trustees go down the "get rid of the risk" route to the likes of LGEN. It slightly smells of a zero sum game, so the margins must be tightish.

I'm sure that personal annuities will make a comeback at some stage, and LGEN will be at the forfront of companies providing 'em. They were only ever unpopular because they were such a ripoff (from the perspective of the individual punter rather than that of the annuity supplier!). The concept remains eminently sensible however, indeed I view my equities as an annuity, albeit one intended to last in perpetuity rather than one linked just to one lifespan.

It's often seemed to me that the annuity companies' emphasis on the need to switch gradually from equities to bonds as one slides into dotage involves them talking their own book at the expense of the dotards, given the long term outperformance of equities relative to bonds ... albeit I recognise that one can have a nasty sudden slide in equity prices from time to time.

LKH on the flybridge By LK Hyman
7:41 06/11/2014 Re: Blimey!

" a rather good investment - especially in March 2009."

I haven't forgotten your success then! (I think I just sat it out in 2009 .... certainly didn't big up on LGEN, as I should have done, given 20/20 hindsight).

" offsets the losers."

I've just managed to lose 10% (of 3% or thereabouts) by going into Tesco at 192, thinking it was oversold, and then chickening out when the serious farce office clumped in. Ah well, never mind. I stuck the shrunken proceeds into more Renishaw, which seems a fine Blighty engineering company. As an arts man meself I admire engineers, especially those who can make a brain surgery robot in Gloucestershire ... or is it in Wales?

LKH on the flybridge By LK Hyman
15:50 05/11/2014 Re: Blimey!

Yes, a rather good investment - especially in March 2009.

Cheers, RAC

P.S. Just as well - offsets the losers. By RAConnell
12:17 05/11/2014 Re: Blimey!
While the numbers weren't totally unexpected, they were still decent and kind of confirm that the change in personal annuities isn't going to have as big an effect as might have been feared.

Fair value is probably anywhere between 200 and 250p and the chances are, that unless the management drop a b^llock that'll continue to move up at between 10 and 15% per annum over the next few years

If the sp overheats I'll probably take some profits, but I've been saying that for a few years now and it hasn't happened yet.

BB By Boring Bernie
15:26 04/11/2014 Re: Blimey!
Gawd love us, strike a light, how's yer father, and many others. My best investment: first bought 30,000 at 33.5p in the dark days.

Av doing well too. Put more into Aviva, but lesser return. Nevertheless, potential...........? By ookyfly
9:06 04/11/2014 Re: Blimey!
Could it get much better?? My biggest holding, was starting to waiver a little with SP flatline, but blimey is a good word for it.

CL By Chicken Lips
7:36 04/11/2014 Blimey!
I shall be very disappointed if these stonking interim results do not produce a nice uplift when Mr Market opens.

I wish I had more LGEN.

LKH on the flybridge 2% By LK Hyman
23:00 29/10/2014 NEW ARTICLE: Trends and Targets for 30/10/2014
"The FTSE provided a masterclass in our new method of presenting lunchtime trades. In an effort to ensure a day trade doesn't risk clients being trapped, we're giving an expected 'first movement on trigger' target and with the FTSE, it was from ..."

http://www.iii.co.uk/node/201791 By II Editor
14:48 15/09/2014 Re: 25 million quid!
Indeed - did strike me as odd yet this mistake seems to have been replicated in many different sources. Thanks for the correction. By imperator2008
9:15 15/09/2014 Re: 25 million quid!

"Highest deal of the week according to Shares magazine."

It's obviously a mistake, m8. Read the company's own RNS and you'll realise that Tomlinson bought 1043 shares, not 10.43 million.


LKH on the flybridge By LK Hyman
22:56 14/09/2014 25 million quid!
Nice little top up by our director Lindsey Tomlinson.

Highest deal of the week according to Shares magazine. How's that for confidence!

She has a pretty good track record, too:

http://www.directorsholdings.com/director/details/26686/Lindsay+Tomlinson By imperator2008
12:27 28/08/2014 Ex divi
We are ex divi today? Sp holding up well if we are, really positive.

CL By Chicken Lips
16:38 06/08/2014 Results
4% plus yield and more to come plus excellent management should equal steady rise in sp. Star holding for me. By tejo
12:47 06/08/2014 NEW ARTICLE: Do L&G's numbers justify a premium rating?
"It took a couple of months for LSE:LGEN:Legal & General's share price to recover from the Budget annuities shocker, but recover it has, and the high-yielding insurer enjoyed a decent first half. Net cash generation was better than expected and ..."

http://www.iii.co.uk/node/185112 By II Editor