Group remains confident on weathering Brexit uncertainty.
Legal & General (LGEN) AuM breaks through £1tn mark
- 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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