Legal & General (LGEN) AuM breaks through £1tn mark

Group remains confident on weathering Brexit uncertainty.

Article updated: 6 March 2019 10:00am Author: Graham Spooner

  • AuM breaks through the £1 trillion mark and annuity sales rise by 18% to £795 million.
  • CEO confident the group will remain unaffected by ongoing political and economic uncertainty.
  • We maintain our ‘buy’ recommendation for income-seeking investors willing to accept a medium level of risk.

Today’s full year results see the shares marked lower by around 3.8%. This follows on from the strong run they have been having so far this year which has seen them once again within touching distance of an all-time high.

Strong Sales and Profit Boost the Dividend

The group also announced an 18% rise in individual annuity sales of £795 million and assets under management at the investment management division went through the £1 trillion mark. Operating profit rose by 10% to £1.9 billion and the dividend for the year was raised by 7% to 16.42 pence. The yield of around 5.5% has increasingly attracted income hungry investors.

Perhaps of more interest is the confident tone used by the CEO who stated current trading is strong and momentum is expected to continue over the year ahead. He states they are largely unaffected by the political situation and economic uncertainty that has been created by Brexit.

Our View on Legal and General - Buy

We recommend the shares a ‘buy’ for investors seeking income and willing to accept a medium level of risk. However, investors must realise sentiment towards the sector could be erratic, dependent on how progress is made towards an EU exit and the possible impact for financial companies.

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All information given including prices, yields and our opinion is correct at the time of publication. Our opinions on investments can change at any time and for our latest view please go to To understand how our Investment research team arrive at their views please read our Investment Research Policy.

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Graham Spooner

Investment Research Analyst

Graham started out as a fully authorised dealer on the Stock Exchange trading floor and for various banks, before becoming an FCA-approved investment adviser. Now a respected voice in the media, Graham’s share tips and comments on the markets are frequently sought by the national press.