Legal & General (LGEN)

[monabri]

Profit below expectations according to

https://www.msn.com/en-gb/money/other/l ... r-BB1jphbE


https://uk.finance.yahoo.com/news/insur ... 34144.html

[idpickering]

The above report seems to have not been well received on the LSE, with the LGEN SP being down 4% as I type.

A bit OTT IMHO, but I intend holding my LGEN shares 'forever', so this short term blip doesn't cause me any angst to be honest.

Ian.

[csearle]

The above report seems to have not been well received on the LSE, with the LGEN SP being down 4% as I type.

A bit OTT IMHO, but I intend holding my LGEN shares 'forever', so this short term blip doesn't cause me any angst to be honest.

Ian.

I think one could do worse than buying shares after a dividend increase is announced because the share price, perversely, seems to go in the opposite direction! C.

[idpickering]

I think one could do worse than buying shares after a dividend increase is announced because the share price, perversely, seems to go in the opposite direction! C.

Thanks for your valid and valued input Chris. As tempting as it may be to buy yet more LGEN, as I've said elsewhere, I have a 'double' holding in capital value terms of LGEN already. A core long term holding for me, and I'm very happy with that.

Ian.

[Dod101]

I wonder if the drop in the reported profit is to do with the change they had to make in taking profits on their very long term contracts? That resulted in a postponement of some profits for future years.

Dod

[monabri]

I wonder if the drop in the reported profit is to do with the change they had to make in taking profits on their very long term contracts? That resulted in a postponement of some profits for future years.

Dod

Maybe there's an element of that but :

https://www.proactiveinvestors.co.uk/co ... 42494.html

"L&G announced a firm-wide operating profit of £1.67 billion for 2023, basically flat from £1.66 billion in 2022, while adjusted profit before tax nearly halved to £561 million. This was attributed to “unrealised mark-to-market impact of higher rates on asset valuations, the cost relating to our announced Modular Homes closure and the write-down of our investment in Onto”."

I read the headline numbers this morning (but was overtaken by other events and have been preoccupied elsewhere) - I'm relieved that the sp wasn't hit anywhere nearly as badly as I feared it might...but then again, it is not very stretched P/E wise.

[monabri]

I wasn't quite sure what was meant by "Mark To Market"

https://www.investopedia.com/terms/m/ma ... 0in%20time.

"Mark to market is an accounting practice that involves adjusting the value of an asset to reflect its value as determined by current market conditions. The market value is determined based on what a company would get for the asset if it was sold at that point in time."

Which is what I thought it was ( )

Notable

https://www.investegate.co.uk/announcem ... -1/8072678

"Our store of future profit increased 9% to £14.7bn (2022: £13.5bn), with CSM up 9% to £13.0bn (2022: £11.9bn), reflecting contributions from our growing annuity businesses and the routine longevity review in H2, and by the Risk Adjustment (£1.7bn) up 11% from 2022 (£1.5bn)."

(Is this related to IFRS17 - which I think might address Dod's question).

[monabri]

The above report seems to have not been well received on the LSE, with the LGEN SP being down 4% as I type.

A bit OTT IMHO, but I intend holding my LGEN shares 'forever', so this short term blip doesn't cause me any angst to be honest.

Ian.

Not too bad..ended down -0.86% which is not significant.

[idpickering]

The above report seems to have not been well received on the LSE, with the LGEN SP being down 4% as I type.

A bit OTT IMHO, but I intend holding my LGEN shares 'forever', so this short term blip doesn't cause me any angst to be honest.

Ian.

Not too bad..ended down -0.86% which is not significant.

Thanks for your input. I noticed that too.

Ian.

[monabri]

Not too bad..ended down -0.86% which is not significant.

Thanks for your input. I noticed that too.

Ian.

Just finished reading a review by the Investors Chron

https://www.investorschronicle.co.uk/ne ... s-9-yield/

"Legal & General’s institutional business (LGRI), which handles the bulk annuities trade, contributed £886mn of operating profit, or 53 per cent of group operating profits, and showed growth during the year of 10 per cent, which was by far the best segmental result. With bulk annuities set for a least a few years of growth on the back of higher interest rates, and few serious participants entering the space, LGEN would appear to have the UK pensions transfer market largely sown up."

"Legal & General shares are fundamentally a bargain at nine times earnings based on FactSet consensus. With the 9 per cent dividend yield thrown in, LGEN can claim to be the leading income share on the market. Buy"

"The security of the payout isn’t really in doubt as LGEN carries capital in excess of its regulatory requirements of £9bn."

Seems quite positive.

[idpickering]

Thanks for the above monabri. It seems positive indeed.

Ian.

[idpickering]

Annual Financial Report

Further to the release of Legal & General Group Plc's (the 'Company') Preliminary Results announcement on 6 March 2024, the Company announces that it has today published its 2023 Annual Report & Accounts (or 'Annual Financial Report').

https://www.investegate.co.uk/announcem ... rt/8085572

Ian (I hold).

[idpickering]

LEGAL & GENERAL SCALES BACK CHINA PLANS - REPORT

UK insurer and asset manager Legal & General Group has scaled back its plans for China, it was reported on Friday.
According to Reuters, L&G had been planning to apply for a QDLP (qualified domestic limited partner) license in the country.

A QDLP license allows foreign firms to sell offshore products to Chinese investors.

But L&G has now shelved the plans, Reuters reported, citing unnamed sources with direct knowledge of the matter. It has also cut the size of its local team to two people from ten, because of the decision.

The two staff members will now focus instead on the firm's existing business of managing offshore assets for Chinese institutional investors.

L&G did not comment on the QDLP licence, but told Reuters that China remained "an important and large market opportunity for asset management over the long term".

https://www.hl.co.uk/shares/shares-sear ... .5p-shares

nb The above is from the company news portion of the LGEN page on HL.

Ian.

[idpickering]

Notice of 2024 Annual General Meeting.

Following the release of Legal & General Group Plc's (the 'Company') 2023 Annual Report and Accounts on 13 March 2024, the Company announces that it has today made available to shareholders the following documents:

· Notice of Annual General Meeting ('AGM') 2024; and

· Proxy Form

The Company's 2024 AGM will be held at The British Medical Association, BMA House, Tavistock Square, Bloomsbury, London, WC1H 9JZ on Thursday 23 May 2024 at 11.00am with additional facilities for shareholders to join and vote electronically.

https://www.investegate.co.uk/announcem ... gm/8133005

Ian.