7:49 05/03/2015 Beaufort's view
Legal & General Group (LGEN.L, 270.30p) - Hold

Legal & General Group reported its preliminary results for the year ended 31st December 2014. Revenues advanced 31% to £51.52bn, boosted by the group's strong investment returns and higher net earned premiums. However, with higher net claims and change in insurance liabilities, expenses rose at a slightly faster pace, up 32% to £50.1bn. Pre-tax profit was up 8% to £1.24bn, supported by solid operating profit growth across Retirement, Capital and Investment Management divisions. Operating profit for Legal & General’s Retirement division increased 38% to £428m, while that of its Capital division rose 13% to £203m. Besides, Investment Management and Assurance Society businesses also recorded higher operating profits of £336m and £460m, respectively. However, the American life insurance division fared poorly, with operating profit down 39% to £56m. The year saw 28% increase in annuity assets to £44.2bn, while insurance premiums went up 8% to £3.0bn. Meanwhile, Savings assets grew 10% to £124.2bn, and assets for the Investment Management division expanded 16% to £708.5bn. The group plans to cut management expenses and operating costs by £80m in the current year, for which restructuring costs of £40m is planned to be undertaken. The group’s full year dividend grew 21% to 11.25p per share.

Our view: Despite significant pension deals adding to annuity sales, Legal & General’s full-year profits have come below analysts’ expectations. The group has a solid presence in the bulk annuity market, but witnessed a poor show of individual annuity sales owing to regulatory changes, which are expected to decline further in the current year. On the positive side, the group’s ongoing efforts towards cost reduction have enabled it to deliver better efficiency. Division-wise, Retirement and Capital continue to aid in improving the group’s overall operating profit levels. The performance of individual annuity segment and anticipation of further regulatory headwinds remain a cause of concern. We assign a Hold rating to the stock


04 Mar 15 JP Morgan Cazenove Underweight 272.75 - - Reiterates
04 Mar 15 Panmure Gordon Buy 272.75 305.00 305.00 Reiterates By IOMINVESTCOM
6:31 05/03/2015 Shore Capital still keen on Legal & General
Shore Capital still keen on Legal & General
Shares in Legal & General (LGEN) fell yesterday as the insurer’s profits fell below analyst expectations, but Shore Capital isn’t fazed.

Analyst Eamonn Flanagan had been forecasting lower profits than his peers, and the 10% increase to £1.3 billion was broadly in line with his expectations.

‘Legals reported a strong set of 2014 results with the key cash metrics better than we and the market had expected, the… profits broadly in line with our forecasts but lower than the market had anticipated, a dividend in line and a [net asset value] c.12p ahead of what we were looking for,’ he said.

‘The outlook statement is, as before, pretty punchy, with the group clearly well positioned in our view to the moving trends across savings, protection, annuities and investment management across both the UK and US.’

Flanagan kept his ‘buy’ rating on the shares, which fell 2.8% to 270.3p yesterday. By IOMINVESTCOM
22:53 04/03/2015 Re: Finals Today
Very encouraging numbers from LGEN today.

And many thanks to the market for letting me top up my holding today for less than it would have cost me yesterday.

I love it when that happens. By percentagegain
19:38 04/03/2015 Re: Finals Today
Thanks all

Must admit I thought overall a very positive set of results. Still my biggest holding and continuing to build.

CL By Chicken Lips
17:49 04/03/2015 final results
I like a 21% payrise so thanks L&G.
Share price will rebound and move steadily upwards IMHO
What's not to like about L&G !!! By lord dalglish
17:08 04/03/2015 Re: Finals Today

"Whats creating the panic here~?"

It's a classic "Buy on the expectation of good results; sell when they arrive" situation.

These were absolutely wonderful results, but they had been quite well flagged by Mr Market in recent months, so some profit taking is only to be expected.

Personally I am completely chillaxed about today's fall and shall continue to hold this excellent company.

I particularly like their strength in the bulk annuity biznay.

Although Gideon has removed the obligation for individuals to buy annuities with their pension funds annuities still make a lot of sense for retirees, at least in respect of some of their retirement income, and I have every confidence that LGEN will make a bob or two for shareholders from annuities, while, at the same time, providing a socially useful product.

LKH on the flybridge
By LK Hyman
10:44 04/03/2015 NEW ARTICLE: Legal & General profit falls short
"High-yielding insurer LSE:LGEN:Legal & General has been in an upward trend for the past six years in which time the share price has surged more than tenfold. The rally has been underpinned by the economic recovery, of course, with investment ..."

http://www.iii.co.uk/node/227372 By II Editor
10:27 04/03/2015 Re: Finals Today
indeed ...
yes, it's a red day, but - 3.5% seems a bit excessive.
Ah well, long term it all sorts itself out ... By keirfamily
10:11 04/03/2015 Re: Finals Today
Whats creating the panic here~?

CL By Chicken Lips
8:21 04/03/2015 Re: Finals Today
They were good results and chasing multi-baggers can be damaging to your wealth !
Still, I sold a smallish % of my holding here today and took some profits.

BB By Boring Bernie
7:42 04/03/2015 Finals Today
Very satisfactory & further substantial uplift in Divi.
If I had put all my dosh into LGEN when I started managing my SIPP instead of constantly looking for 10 +baggers my pension fund would be worth substantially more than it is & it would be paying a great dividend ! By dave297
22:17 12/02/2015 Re: sell, then what?
I bought 30,000 at 33.5p, in the depths of the crisis. By far my best investment. I still hold them. By ookyfly
20:55 07/02/2015 sell, then what?
Next to ARM holdings LGEN is showing me the best long term return in my extremely diverse portfolio.

I remember during the financial crisis that the sp dropped to 30/4p(?? without checking) and I topped up with a few then.

Seems to me this an extremely well managed company with the ability to provide customer
choice in the face of rapidly changing market situations

Apart from very impressive capital growth the shares have also provided excellent dividend revenue.

My question therefore is; if I sell what is a better mid-long term investment? I personally cant think of one. By tradingup
9:35 23/01/2015 Re: Reduced weighting
Well today I am glad I am still holding and will continue to invest into the rise should it continue as part of my ISA. Have just checked and to date this is the only share I have only bought in my portfolio and not sold. Maybe take this back next week or month but for now this is as good as it has ever got for me. Great company, great direction and continued rise for 99p.
CL By Chicken Lips
16:08 20/01/2015 Re: Reduced weighting
H Boring Bernie,

Thanks for comments.

>>loathe to sell - I have been feeling like that for a while ie held 3.5yrs but last 6 months!!

Decided to reduce further today this morning at 2.545 which also banked 165% gain which left us with free shares and decent dividend. Feel better for banking that paper profit.

Will not stop me trading on top of holding on any serious pullback in the general market although LGEN seems to only give back anything between 25p-40p because well managed company.