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MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  Legal & General Plc    LGEN   GB0005603997

LEGAL & GENERAL PLC

(LGEN)
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Insurer Legal & General scales back dividend plans, shares fall

11/12/2020 | 05:07am EST
The logo of Legal & General insurance company is seen at their office in central London

LONDON (Reuters) - Shares in Legal & General fell more than 3% on Thursday as the British life insurer kept its final dividend payment for 2020 flat due to the coronavirus pandemic and cut its dividend growth target for the next five years.

L&G has not suffered a major impact from the pandemic but executives told reporters that housing sales dropped in Britain following the country's first lockdown in March, while U.S. life insurance claims increased due to the virus. L&G is a direct investor in housing and commercial real estate.

L&G is also a major player in the market for annuities, which pay pensioners a fixed income for life. It also invests in infrastructure and is one of the largest investors in the UK stock market.

On the 2020 dividend, Chief Financial Officer Jeff Davies said: "We felt that a pause year was a good balance between rewarding shareholders - where many aren't rewarding at all - versus holding back for potential uncertainty."

L&G paid its final dividend for 2019, unlike other British insurers such as Aviva and RSA.

L&G aims to generate eight to nine billion pounds in combined cash and capital, paying dividends of 5.6-5.9 billion pounds over 2020-2024, it said in a statement ahead of an investor day on Thursday on the group's new five-year targets.

L&G said it aimed for earnings per share to grow faster than dividend growth, which it targeted at 3-6% annually.

Barclays analysts said the dividend growth target was lower than growth of 7% seen in 2015-2019, adding the targets "fell short of our expectations." The bank retained its "overweight" rating on L&G's stock, but cut its price target to 311 pence from 320 pence.

L&G's shares were trading at 228 pence at 0938 GMT, down 3.5% and were among the worst performers in the FTSE 100 index.

(Reporting by Carolyn Cohn, editing by Sinead Cruise and Jane Merriman)

By Carolyn Cohn


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
AVIVA PLC 2.04% 348.25 Delayed Quote.4.95%
LEGAL & GENERAL PLC 1.15% 259.1 Delayed Quote.-3.76%
MSCI UNITED KINGDOM (STRD, UHD) -0.78% 1061.025 Real-time Quote.3.72%
RSA INSURANCE GROUP PLC 0.15% 677.4 Delayed Quote.-0.15%
All news about LEGAL & GENERAL PLC
04:06aLEGAL & GENERAL : announces second Assured Payment Policy (APP) de-risking trans..
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01/25LEGAL & GENERAL : continues fight against climate change as it publishes strateg..
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01/21LEGAL & GENERAL : invests a further £57m in Leeds as it adds second Build to Ren..
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01/20LEGAL & GENERAL : and Oxford University gain planning consent for new £200m life..
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01/20TAKE CARE : Cost of residential care varies by more than £800 a week in differen..
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01/20LEGAL & GENERAL : LGIM appoints Silvia Schaak as Co-Head of Institutional German..
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01/19LEGAL & GENERAL : announces global PRT bulk annuity transaction, covering Evonik..
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01/18LEGAL & GENERAL : Planning granted for major modular homes scheme in Bristol
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01/14LEGAL & GENERAL : announces c£30 million bulk annuity with the Marie Curie defin..
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01/14LEGAL & GENERAL : LPI Fund reaches £1.8 bn Assets Under Management as it adds 24..
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More news
Financials
Sales 2020 32 991 M 45 021 M 45 021 M
Net income 2020 1 664 M 2 270 M 2 270 M
Net Debt 2020 1 149 M 1 567 M 1 567 M
P/E ratio 2020 9,11x
Yield 2020 6,93%
Capitalization 15 208 M 20 764 M 20 754 M
EV / Sales 2020 0,50x
EV / Sales 2021 0,39x
Nbr of Employees 8 542
Free-Float 97,4%
Chart LEGAL & GENERAL PLC
Duration : Period :
Legal & General Plc Technical Analysis Chart | LGEN | GB0005603997 | MarketScreener
Technical analysis trends LEGAL & GENERAL PLC
Short TermMid-TermLong Term
TrendsNeutralBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 18
Average target price 279,56 GBX
Last Close Price 256,20 GBX
Spread / Highest target 48,3%
Spread / Average Target 9,12%
Spread / Lowest Target -35,6%
EPS Revisions
Managers and Directors
NameTitle
Nigel David Wilson Group Chief Executive Officer & Executive Director
John Kingman Chairman
Jeff Davies Group Chief Financial Officer & Executive Director
Julia Susan Wilson Senior Independent Non-Executive Director
Lesley Mary Samuel Knox Independent Non-Executive Director
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