Legal and General - LGEN

Couple of things to consider with Legal and General.

Debt is quite high at over £20 billion and increasing!

Negative operating cash flow, can they cover the debt?

See latest trading statement
https://www.hl.co.uk/shares/shares-search-results/l/legal-and-general-group-plc-ord-2.5p-shares/share-news
Also dividend cover was 1.83 and will Probably rise from here in as dividends are reduced to 5% increase per year.

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Part of previous statement

"The company estimated that its solvency coverage ratio as at the end of June was around 215%, up at least 25 percentage points on the year, mainly due to higher interest rates and strong ongoing operational surplus generation, and after paying the 2021 final dividend.

L&G said group cash flows remain strong and return on equity is consistent with its historic performance of around 20%.%"

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Debt is high a product of taking on all these pensions. The Prudential regulatory authority requires them to add some of their own capital but the excess capital belongs to them. I would expect over time for them to be taking out the excess.
There investments look sound to me and better than previous investments ie bonds.
For example their investments in houses rent at affordable rents

In the case of lax and reckless behaviour it applied to the banks. Not to the insurance companies…or have i got that wrong??

I forgot about " new IFRS 17 accounting practices reflected in their balance sheet in 2023 future liabilities using a consistent discount model"
As in they all report using the same accounting method. life insurers will have to extrapolate their income and will result in a lower number and possible reduced rating. In essence nothing will change just a different probably a lower number at the bottom of the account page.
Personally i think it will be relatively better for legal and general than the other insurance companies.
Another thing take into account is it will be very costly.

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Good to see the shares going in the direction.
As the analyst say it has 1.5 beta it will be dependent on the market continuing upwards.
Personally i wonder if the market is getting ahead of itself?

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Not good I wanted to buy more at lower price and now I’m even :joy::joy::joy:

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Haha same! Trying to get that average down from £2.65 and now we’re back up there

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£2.66 is mine least there about 15 days before ex div date

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My average is down to £2.55 but then I was lucky to catch the shares in June and early July when they were down to £2.43 and even at one point went down to £2.38. I’m not averse to buying more myself but obviously I’m going to have to wait a while before I’ll be averaging down.

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Well never say never,
As long as div stay decent and same ish I’ll be happy to hold tbh
The last dividend payment was beautiful as was over £50 even if half That will be amazing and I won’t be technically in the red :+1:t2::kissing_heart:

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2022 Half year results: Fandabby: increase of 8% in operating profits. Even cash generation is up 22% :upside_down_face:

The H1 dividend, declared today, is 5.44p and is 5% up on last years (5.18p). Ex-div is 18 August.

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image

Live feed from the L&G boardroom this morning

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Annoying, sold mine the other week to concentrate elsewhere. :man_facepalming:t2:

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Yes, it happens sometimes doesn’t it. I sold my National Grid shares just before the price shot up earlier this year! :grimacing:

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Good stuff, I’m sure there are plenty on here who are long term buy and hold LGEN. It’s certainly almost a set it and forget for me. They go ex dividend in 9 days according to Dividendmax but I put a little in every month and I try to not focus on this date.

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I like this bit of the report:

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What is the circle :thinking: doesn’t it mean 2022? Is lower and worse :thinking:

Think I just got it buy I’ll still wait on reply :rofl: