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.’

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

European Central Bank meeting

Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement on 24 October 2019.

  • How might the next meeting affect the markets?
  • What are the key rate decisions to watch?
  • Why is the Governing Council announcement important for traders?

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.