Legal and General Takeover Talk

DAVID PROSSER, chief legal officer, yesterday calmed hopes that he was seeking a buyout deal after recording nine-month sales figures hailed by the city as solid but unspectacular. LGGNY`s profitability has improved over the past year and is generally stable over time. A host of new acquisitions and some optimistic earnings announcements helped push the market higher yesterday. In recent weeks, it has also been the subject of rumours of potential deals, but few industry experts believe the bank will be able to make decisions on acquisitions before its new chief executive, Matt Barrett, arrives next month. The banking group is determined to go on the offensive after a period in which it was overshadowed by competitors such as Lloyds TSB. NatWest itself was seen as a takeover target until recently, after being badly hurt by a £90m derivatives trading scandal and later admitting it grossly misjudged its move to investment banking. Leisure group Rank, which is in the process of selling its hard rock business, added 16.5 pence to 272.5 pence after a foreign company expressed interest in British gambling or, alternatively, private equity groups. A huge turnover of the company`s shares on Tuesday sparked initial interest, but it looks likely to be a flawed trade. Prudential was also higher, rising 15.5 pence to 662 pence as HSBC could consider a bid for the deal, although traders said HSBC had also been tied to mortgage bank Bradford & Bingley, rising from 12.25 pence to 459.25 pence.

NatWest Bank, the High Street banking group, has reportedly submitted an £11 billion takeover bid for Legal & General, the highly successful life insurance company poised to become Britain`s largest investment manager and the leader in providing so-called annuities to stakeholders. Legal & General was founded in June 1836 by Sergeant John Adams and five other lawyers in a café in Chancery Lane. [6] Originally called the New Law Life Assurance Society, the Society was limited to lawyers. The name was changed to Legal & General Life Assurance Society to reflect the fact that the policies were available to the general public, but ownership of the shares was limited to lawyers. The group expanded into the UK and soon began acquiring foreign life insurance companies by buying a retirement business from the Metropolitan Life Assurance Company of New York in the 1930s. [6] Reuters considers LGGNY`s risk management to be in the 97th percentile of the industry with an overall risk management (CSR) strategy of 94/100, which is excellent. Legal & General Group plc, commonly known as Legal & General, is a British multinational financial services and wealth management company headquartered in London, England. Products and services include investment management, life mortgages (a form of share release), annuities, annuities and life insurance.

From January 2020, it will no longer offer non-life insurance following the sale of Legal & General Insurance to Allianz. [3] The firm operates in the UK and US, with investment management firms in the Gulf, Europe and Asia. [1] Brad Thomas is CEO of Wide Moat Research (“WMR”), a provider of subscription-based financial information serving more than 6,000 investors worldwide. WMR has a team of experienced multidisciplinary analysts covering all dividend classes, including traditional REITs, MLPs, BDCs and C Corps. By 2025, the dividend growth rate is expected to reach 14 years. In September, the feeling was extremely anxious, a month later, during the 6% rally of the market in October, extremely greedy, and now we are back to extreme anxiety. Better risk-adjusted returns than virtually any other investment strategy on Wall Street? Certainly. But what if I told you that there is a blue-chip company with a 6.5% yield that management says will increase its dividends by 3% to 6% over time? The market, and investment bankers in particular, have been looking to Legal & General for something exciting since the deal with NatWest was halted last year. However, Prosser tried to calm expectations by calling his strong numbers “exactly what you expect from an insurance company.” Over 12 months, happiness is 20X stronger than fundamentals Here`s why the market is scared, but here`s the bottom line. LGGNY has $1.73 trillion in assets and $4.2 trillion in assets under management.

There are no risk-free businesses and no one business is right for everyone. You need to know the fundamental risk profile. According to MSCI`s 185 experts, 13 major risk factors are important for this industry. Basically, if you`re looking for a way to diversify overseas while enjoying one of the safest returns of 6.5% on Wall Street, LGGNY is a great place to look. “Changes in regulations or legislation can hurt our strategy.” Disclosure: I/we have an advantageous long position in LGGNY shares, whether through stocks, options or other derivatives. I wrote this article myself, and it expresses my own opinion. I don`t get any compensation for this (except for Seeking Alpha). I have no business relationship with a company whose shares are mentioned in this article. Sir Tom purchased the shares through his West Coast Capital vehicle from Chairman Paul Fraser and Director Stewart Newton, both of whom will be retiring from the Board.

Two representatives from the West Coast became directors. Bridgewell analysts advised clients to buy the shares despite a mixed trading statement from the group. Although life and annuity insurance also suffers from tight profit margins, it is seen as a potentially fast-growing area due to the introduction of stakeholder annuities. LGGNY is essentially an anti-bubble stock that is pricing in growth for now, while analysts expect 3% to 6% and management says it expects 8% to 9%. What if I told you that it is an A-rated company, not one, not two, not three, but four rating agencies? LGGNY`s quality rating of 66% means that in terms of quality, these are Blue Chips such as What I can tell you with a high degree of certainty is that Legal & General is a wonderful alternative for REIT investors (or income investors of any kind) who are currently struggling to find safe returns of more than 5%. Other executives include Jeff Davies (Group Chief Financial Officer), Michelle Scrimgeour (CEO of Legal & General Investment Management, the firm`s investment management arm) and Kerrigan Procter (CEO of the Group`s investment business). Together with Nigel Wilson, they form the board of directors of Legal & General. [41]. CDS spreads have widened somewhat over the past three months, although the bond market still believes that LGGNY`s fundamental risk for the next decade is very low. Business risk management is impeccable, as we will see in detail in the “Risk” section.

Just a few weeks ago, I was in Paris and Barcelona, meeting investors and visiting trophy properties. Over 11+ years, fundamentals are 11X stronger than luck But perhaps the most attractive reason to consider Legal & General is valuation. NatWest is expected to be forced to pay a high price for L&G, which is seen as one of the jewels of the financial services industry in the UK and could be a top destination for businesses in Europe or the US. It actually contains over 1,000 metrics if you count everything that is considered by 12 rating agencies that we use to assess fundamental risk. Balance in all the important things (safety, quality, risk management, return, growth and value) (Source: Reuters/Refinitiv) – more than 500 metric models Scary headlines about regulations or lawsuits? ESG risk scores already measure it The paint and chemistry group ICI was also included as part of the offer by Collins Stewart. Shares rose 14 pence to 422.75 pence as the broker said a cash or share offering by Dutch group Akzo Nobel would create the world`s largest supplier of coatings. Collins Stewart said regulatory issues would be minor — Akso may have to sell its Crown Paints brand in the UK, which competes with ICI`s Dulux business — and Azko could help fund the deal with a sale or IPO of its Organon Pharma division. But the owner of property site Rightmove climbed 20.25 pence to 343.75 pence. Numis analysts have begun publishing reports on the stock with a buy recommendation and a price target of 413 pence. Faster growth than the Nasdaq? That`s what analysts think. You just showed up at Legal & General, one of the best blue chips with a 6.5% yield you`ve never heard of, and the latest recommendation from the Dividend Kings for our members. Basically, a dividend ratchet where dividends increase or remain unchanged only when the results of a given year are particularly weak.

LGGNY tends to pay out 55% to 60% of profits, as dividends vs. 50% security policy Low interest rates in Europe have affected LGGNY`s profitability compared to its US competitors. The move, which will be confirmed in an official stock market announcement this morning, follows years of speculation that L&G and its widely admired management are being gobbled up by a major financial services group. Following the trend in the UK when financial institutions entered the real estate brokerage business, Legal & General bought Whitegates Estate Agency from Provident Financial Group plc for £19 million in December 1989.[8] [9] NatWest, whose recent half-year gains have left investors unfazed, derives only 5% of its revenue from life insurance and annuities – an area where L&G is considered one of the most powerful players, having become the only financial firm to promise to pay fees to stakeholder pension plans at or below the government`s 1% cap. LGGNY is a potentially good buy for anyone who knows its risk profile and is not far from becoming a potentially strong buy, and here`s why. In 2019, following earlier speculation,[29][30] the company agreed to sell its General Insurance Legal & General Insurance division to Allianz Insurance, while acquiring the remaining 51% stake in Liverpool Victoria General Insurance (LV=), of which it already held 49%. [3] The acquisition took place on 1. January 2020, when the holding company was renamed Legal & General Insurance to Fairmead Insurance. [31] The existing policies will be merged into the insurance subsidiary Allianz LV= as part of an expanded business.