Legal & General today (12 June) said it will make the most of its international business opportunities, with a particular focus on the US, after a ‘rigorous’ review of its strategy and financial targets.
The revamp of the business will focus on three core divisions: Institutional Retirement, Retail and Asset Management,
On the latter, L&G will create a single Asset Management division, bringing together Legal & General Investment Management (LGIM) and Legal & General Capital (LGC) as a unified, global, public and private asset manager.
L&G has also announced it will be returning more to shareholders over 2024-27, through a combination of dividends and buybacks, with 5% DPS growth to FY24 and a first share buyback of £200m in 2024, followed by 2% DPS growth per annum out to FY27 and further similar buybacks.
Legal & General Group CEO, António Simões (pictured) said: “Over the last 5 months we have rigorously reviewed our business, listening to investors, customers, partners and employees. This work has deepened my belief in our strong foundations and excellent potential.”
Almost exactly one year ago the UK FT-SE 100 index quoted insurer and financial services group announced that António Simões would become group chief executive officer of Legal & General and he officially started in the role on 1 January 2024 following regulatory approvals.
He joined from from Banco Santander where he had been regional head of Europe since September 2020. In this role, he led Santander’s businesses in the UK, Spain, Portugal and Poland, working across retail and commercial banking, corporate and investment banking, wealth management and insurance.
Prior to joining Santander, he spent 13 years at HSBC, including as CEO of UK and Europe, and latterly CEO of Global Private Banking, based in London and Hong Kong. He is a former McKinsey & Company partner.
In today’s statement, Simões continued: “L&G is in prime position to respond to and benefit from major structural and societal changes. Changing demographics, climate transition, economic uncertainty and technology are driving demand for trusted, experienced investors that can manage risk through the cycle, originate productive assets, and deliver returns for savers.
“Our vision is for a growing, simpler, better-connected L&G, focused on three core business divisions, and set apart by our shared sense of purpose and powerful synergies.
“By seizing the opportunity in Institutional Retirement while investing to scale and deepen our capabilities in Asset Management and Retail, we will evolve our business to better address society’s changing investment needs, and shift towards fee-based earnings at higher returns on capital.
“We will make the most of our international business opportunities, with a particular focus on the US.
“The strategy and targets set out today signal L&G’s ambition and commitment to invest to grow our business, and reward our shareholders for their support.”
