|Telegraph suggesting LGEN :
Venture Cap Fund - Woodford - Oh Dear
|LEGAL & General is to invest in digital start-ups.
The life and pensions giant?s main investment arm has joined Woodford Investment Management and the British Business Bank to pump in an initial #150million through Accelerated Digital Ventures.
The platform will target existing technology hubs including Cambridge, Oxford, Bristol, Belfast, Cardiff, Glasgow, Sheffield and Manchester.
L&G Capital?s Paul Stanworth said: ?If we are to catapult the best of British enterprise more akin to Silicon Valley, we need early capital support.?
Re: L&G offers growth and income opportuniti...
|makes good reading
L&G offers growth and income opportunities, says Shore Capital
|L&G offers growth and income opportunities, says Shore Capital
Shore Capital was impressed by a capital markets day at Legal & General (LGEN), which showcased the opportunities at the insurer.
Analyst Eamonn Flanagan reiterated his ?buy? recommendation, which, despite the positive response to its capital markets day, slipped 1.9%, or 4.6p, at 237p.
?L&G hosted an intense but excellent capital markets event,? he said. ?The event succeeded, to us, in demonstrating the opportunities open to the group from market leading positions in the annuity, protection, lifetime mortgages, and asset management markets. These are supported by a powerful balance sheet, a highly capital efficient model, an appropriate risk appetite for direct investments and a very clear focus on cash generation.?
Flanagan said the benefits of a diversified model were ?very evident?.
?The c.6% forward yield anchored by net cash cover of over 1.5x and our expectation of c.7% per annum dividend growth in the coming years in itself should dictate a positive recommendation on the stock,? said Flanagan.
?However, the income attractions are only part of L&G?s investment case. As the [capital markets] event highlighted, the growth opportunities for this extremely well-managed business are substantial.
Re: FT reports on L&G Investor day
Good to hear from you. Read many of your posts, insightful and witty.
Yep, A downward movement seems to correlate with either one of my posts or a buy.
Its been on a good run but has not passed previous pre Brexit highs.
I have been in since the the 2007 sell offs, looked at Aviva and Pru, probably a better bet - went for L&G and rather dangerously have become attached to L&G.
I am hoping this is a claw back and profit taking.
More reassured since the Investor Day commentary, there was quite a it of hearsay and myth flying around, investors getting spooked.
Still not enough in it for early retirement.
|Legal & General Group: UBS reiterates sell with a 185p target.
Games -- probably nonsense, but there you go.
Re: FT reports on L&G Investor day
"Looks reassuring and positive."
That's not what Mr Market is saying today!
I've noticed recently that, on days when the companies in which LGEN is invested are roaring ahead (which would make one expect LGEN to roar ahead as well) LGEN often seems to go in the opposite direction. I have no idea why this should be the case!
LKH on the flybridge
Re: FT reports on L&G Investor day
|Thanks for the post. Looks reassuring and positive.
FT reports on L&G Investor day
| Below is gist of an article that explains why fears for L & G have been misplaced.
Basically growth as far as the eye can see, out performance and a safe divi. That's ok then.
"plans to grow faster than many of its rivals over the next five years as it takes advantage of demographic trends such as the UK?s ageing population.
At an investor day in London, the insurer said its ?ambition? was to maintain the progress it had made in the past five years over the next five. Over the past five years it has increased its operating profits at an average rate of around 8 per cent a year.
That is higher than other large insurers, including Aviva, Axa and Allianz, which are planning to grow their profits at a mid-single digit rate over the medium term, with some specifying 5 per cent growth.
Nigel Wilson, Legal & General chief executive, said: ?Through a combination of good analytical insights and some good luck, we have chosen to build our businesses around long-term structural growth drivers ? both macroeconomic and demographic. The world?s population is simply getting older . . . there is more need for real assets . . . producing real returns.?
Legal & General?s target comes despite the economic uncertainty created by the Brexit vote. The company is the most UK-centric of the large life insurers, with few operations overseas. Last month it agreed to sell its Dutch operation to Chesnara for ?160m.
Legal & General?s shares fell sharply immediately after the Brexit vote but have since recovered their losses.
The company said cash generation for this year would be #1.4bn, about 6 per cent ahead of consensus estimates.
Barrie Cornes, analyst at Panmure Gordon, said: ?The prospect of rising interest rates is good news for the life sector and we believe that L&G is probably the best placed among the UK life insurers to benefit.?
The company also sought to soothe market nerves on its capital position and dividend.
There had been concerns that Legal & General might consider cutting its dividend if its Solvency II ratio (a measure of capital available as a proportion of the minimum required) fell below 140 per cent.
However Simon Gadd, chief risk officer, said: ?The 140 per cent coverage ratio . . . has been misinterpreted by some commentators. It is best described as a threshold for increased monitoring.?
He added: ?We have a wide range of management actions available and depending on the circumstances and causes of the fall, we will decide whether to act, and if so, which actions to utilise. These actions include, for example, asset de-risking, further reinsurance, restricting new business or raising debt.?
At the end of June, Legal & General?s Solvency II ratio stood at 163 per cent.
Mr Wilson said he was looking for new places to invest the company?s money. ?We?re very long cash,? he said. ?I feel uncomfortable and we need more ideas from my colleagues on where we should deploy that capital.?
He did not rule out a return of cash to shareholders, but said ?I?m not a huge fan of share buybacks?."
Re: Legal & General boosted by Barclays upgr...
|Barclays has upgraded Legal & General (LGEN) as the insurer puts concerns about capital requirements and the risk of recession behind it.
Analyst Alan Devlin upgraded his recommendation from ?equal weight? to ?overweight? and increased the target price from 194p to 276p. The stock closed 4p up at 240p was trading at 240p at the time of writing. 239.90 +4.10 (1.74%)
?We upgrade L&G to ?overweight? as we believe the risk of a UK recession has faded while the Solvency II capital requirements of writing bulk annuities is much more efficient than expected,? he said.
?We believe the analyst day on 5 December could be a catalyst for the stock as the company addresses investor concerns, particularly the capital requirements for bulk annuities and the opportunities at L&G Capital.?
Devlin added that the insurer was also ?one of the prime beneficiaries? of the growing trend in passive investing.
?L&G is trading on 10x our revised full year 2017 estimates with a full year 2016 estimated yield of 6%. Our revised price target of 276p, equivalent to 12x our full year 2017 estimates and a 5% full year 2016 estimated yield, implies a 23% total return,? he said.
|Usually one of the more reliable BUY signals for a stock, and LGEN has just posted one where the 50 day ma crosses upwards through its 200 ma. Sometimes a false signal is given where the cross is made but shortly reverses. With Trump mania sweeping through the US markets I don't think that we will have a swift reverse, so hopefully we'll see 280 within a few months.
LGEN has been one of my best performing shares which I bought after the referendum, and I'm happy to continue holding.
Legal & General boosted by Barclays upgrade
|By Renae Dyer
Date: Thursday 01 Dec 2016
LONDON (ShareCast) - (ShareCast News) - Legal & General shares gained on Thursday as Barclays raised its rating on the stock to 'overweight' from 'equal weight' and lifted the target price to 276p from 194p.
"We upgrade Legal & General to Overweight as we believe the risk of a UK recession has faded while the Solvency II capital requirements of writing bulk annuities is much more efficient than expected," the bank said.
Barclays said the UK economy has proven more resilient than its economists had initially feared. Economists at the bank recently increased their 2017 fiscal year gross domestic product forecast to 0.4% growth from an initial estimate for a 0.5% contraction.
"L&G's investment leverage of 6x its net assets is among the highest in Europe, and a recession is the one environment in which we would be uncomfortable owning a UK life insurer."
Another concern for the bank was the potential impact of Solvency II, a regulation on capital requirements for insurers. Barclays thought it would be the "death knell for bulk annuities" but recent evidence has suggested otherwise.
L&G has written #6.3bn of annuities in the year to date, at a capital cost of #200m at 3% of premiums.
While it was supported by the #2.9bn acquisition of Aegon's annuity portfolio, Barclays noted that underlying net capital requirement is only about 5%, as L&G uses longevity reinsurance, direct investments and equity release mortgages to improve capital efficiency.
Barclays estimates the Solvency II ratio has improved to 166% at 28 November, versus 158% at half year.
Re: Interims and stuff : My thoughts
Thing is interest rates have been low for so long we have forgotten the sharply effect they can have on financial company profits.
Don't sell to soon.
Re: Interims and stuff : My thoughts
|Back when the Interims came out, and also a fair bit since, there's been a lot of angst on here about L&G's business model.
The sp back then was 207p, and, probbaly down to an upgrade from Barclays, the sp has gone up 6.5p today to 242p. Add in the 4p divi, and that's a rise of a bit more than 18%. I wish I'd bought at those levels
You're waffling Bernie I here you say. Aye, tis true, I am.
Anyway, sentiment seems to have changed, so the question I guess is, at point do you start to take some profits ( I appreciate some will hold for ever just for the divi ), or, to put it another way, at what point do we start to look more than fully valued.
I'm going to say 280p, mainly because it's a nice round number.
Re: Vickers (Rolls Royce)
"hope you haven't got your kidnap insurance with l&g"
LOL. Socotra is far safer than the mainland. A beautiful island. Long may it continue thus.
LKH on the flybridge, at anchor, off Hadibu ... just in case