CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Legal & General share price: what’s the outlook as insurance business sold?

The British financial services group ended last year on a high that helped give its balance sheet the strength necessary to deliver another strong performance.

Legal & General Group (L&G) has remained consistent with its strategy, building market leading businesses via a mix of organic and inorganic growth, supported by a strong balance sheet.

Over the last eight years, L&G has managed to deliver compound annual profit growth of over 10% amid a myriad of macroeconomic headwinds, with the financial services sector contending with political uncertainty in the form of Brexit, asset market declines and slowing economic growth.

But despite the challenging environment, L&G has remained resilient and performed well, with investors optimistic about the company’s outlook in 2019.

Legal & General sell general insurance to Allianz

Last week, L&G announced that it will sell its general insurance business to German insurer Allianz in a deal valued at £242 million.

The deal, which is still subject to regulatory approval, is expected to complete later this year, according to a recent press release by L&G.

The cash raised from the sale will be allocated towards growing L&G’s core businesses, the company said.

‘Selling the general insurance business is the right decision for our customers and shareholders,’ L&G Group CEO Nigel Wilson said. ‘We continue to focus on delivering against our strategy, allocating shareholders' capital rigorously.’

‘We are market leaders in 10 UK markets and have a growing presence in the USA and an emerging presence in Asia.’

Legal & General expands built-to-rent venture

Last Month, L&G revealed that its joint-venture with PGGM into the UK built-to-rent (BTR) market is being expanded after the pair acquired sites in London for a £500 million development.

L&G said the site will provide around 1,000 homes and 85,000sqft of commercial space.

‘This latest acquisition is another great example of Legal & General investing in a location with significant urban regeneration potential and providing large scale sustainable rental schemes which will have a positive socioeconomic impact,’ Managing Director for principal investing at L&G Capital Paul Miller said.

‘The location is highly desirable for renters and, with 1,000 units planned for the site, demonstrates Legal & General’s ambition to make a real impact on the delivery of new homes within the UK.’

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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