Legal & General (LGEN) 💰 💸 - Share Chat

It’s not really my area of expertise but is it through fees charged per year for Assets Under Management?

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Will be the same way the make money off of all of their pension funds. They’ll charge a fee for running your pension plan. With nearly a trillion pounds in AUM even a tiny percentage fee starts to really add up.

Not necessarily Market related, but wanted to share a conversation I’ve just had with LEGN around taking out Home Insurance because it has been a bit of an eye-opener and I have no one else to share it with other than my wife :sweat_smile:

So, as a relatively new investor in LGEN (since the beginning of lockdown) with our Home Insurance up for renewal and a notice on the FT homepage that investors get cash off their insurance, I thought I’d get a quote from them.

I went through their quick 5-step online process. The questions were very generic: my personal details, the address of the house (I live in a vaguely nice part of the world, honest) and any previous claims over the last 5 years (we have none).

I was told that they couldn’t give me a quote and I’d need to ring them.

It’s a bit of a pain, but not necessarily new as I know insurance firms check a load of different sources when you go through an automated system and if things don’t work out 100%, I get given a “computer-says-no” response.

So I figured I’d need to go through things in more detail over the phone.

I phoned them up, explained the situation and was basically told that if the online service says “no” then there’s no point going through a process over the phone as there’s nothing more that they can do for me. Instead, they recommend that I go through comparison websites. I won’t get my investor discounts but that the comparison websites “are pretty cheap anyway.”

I don’t whether I’m just being too sensitive here, but it’s just left a bitter taste in my mouth and a question around my investment. It essentially makes me wonder how much cash is being left on the table if a 5 step online process (which I assumed was just a hook for new customers and must have a less than stellar success ratio) is the best that they can do when attracting new customers in such a competitive market. Who can genuinely make a decision on whether to offer insurance or not after 5 questions?

In addition, the guy was less than helpful and the fact that I was an investor (admittedly a nice to have) was basically worthless given that they were unable to provide me a quote. I was off the phone in less than 5 mins.

I’ve not had any kind of experience of this from any other Home, Car or Life Insurance provider over the last 10 years. Did I just get the wrong guy? Or is this the LGEN experience?


If they’ve decided you’re uninsurable, it may be because they think you’ll be too expensive to them.

As an investor, you should be happy with the fact they have these checks. You’d probably not be pleased if they cheaply insured an estate of houses built on a flood plain just because the owners had shares in the company.

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No I agree - I guess my point is that I don’t really see how they could come to that conclusion.

As said, I’m used to a load of in depth questions and have never had any problems with life, home or car insurance over the last 10 years. With LGEN, the only questions that could have determined that were my address (a decent area of the country by most insurers) and whether I’d made any claims over the last five years ( I haven’t).

Indeed, I wasn’t told that I wasn’t eligible. I guess I’m just surprised that, as a direct customer, I was told that their preference was for the comparison sites to determine my eligibility rather than them being able to do it themselves.

Anyway, I probably shouldn’t have posted the above. I don’t want this to turn into a conversation as to whether I’m eligible or not. I was just surprised, given the process I’ve been through with other insurers.

Appreciate the response though!


Thanks for this vama

I knew I should have bought at 180-190p. A great company in my opinion, I like their inclusive capitalism marketing. They have a nice range of innovative ETFs to boot.

P/E ratio is good, price earnings growth is under 1! From Investopedia “Although earnings growth rates can vary among different sectors, typically, a stock with a PEG of less than 1 is considered undervalued since its price is considered to be low compared to the company’s expected earnings growth”

I’d like to hear from bears. Tell me why I shouldn’t buy this share?


Low interest rate environment is just not very good for insurers/pensions. Also quite heavily exposed to UK property + unsure of the long term effects of a global pandemic on life insurance claims. I was tempted at 180 several times but I just don’t see that dividend as sustainable long term. It will probably perform well for the next few years though.

I wouldn’t say I’m a bear and I wouldn’t say that anybody shouldn’t buy the shares but I would offer up some comments of caution here:

  • @dk1 gave a good answer on interest rates so I wont cover that
  • The Simply Wall Street model is flawed when it comes to financial/insurance companies as its heavily based on earnings which are in turn heavily based on asset prices. Eg earnings will increase simply because the price of the assets goes up, that isn’t ‘real’ earnings.
  • Same applies to PE & PEG ratios, they are heavily influenced by asset prices so cannot accurately be used as part of a valuation model. However, they could be used to compare the relativity of a business to its peers.
  • A better valuation model for companies like this would be to calculate NAV or better NNNAV
  • I attended (virtually) their capital markets day recently and they painted a very optimistic picture of cash generation & value creation. Whilst overall their plan sounded excellent it was indeed very optimistic and I think for them to hit those numbers they really do need a lot of things to go right for them over the next few years.
  • Again going back to @dk1 point on the dividend they have sought to protect & commit to that dividend but they will have big issues if cash generation does not go to plan as expected. One year of under performance will create a domino effect and a cut will have to come very quickly. The cash coverage is ok now & looks good if they meet their targets but meeting those targets is a VERY big ask. I wouldn’t be surprised that anybody buying this for the dividend is disappointed in a year or two. But then again, no company should ever be bought for its dividend

Just to clarify that I’m not against Legal & General in any way, I actually think its a great company with a good long term outlook. I’m just trying to offer some balance.


I bought some yesterday. Value is too generous to pass up at the moment.

Long term holder of LGEN here - I topped up when they were around £1.88 so overall holding is showing +28% right now, which is nice.

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My average is about 2.03 so currently also up by about 26%. Yes I was initially drawn in by its dividend but I’m now holding it as a defensive stock almost.
Not going to set the world on fire but adds some balance to the portfolio.


I’m a bear on legal & General also the UK market going 4ward as still under valued by 30% from pandemic crash .loads of creditable analysis raising there valuations up from £3 past the £4 mark which actually comes in @ fair value on Streetwise model. As said I see the UK market the next hunting ground with loads of undervalued equity’s with BT facing possible takeover from Deutcher Telecom, Shell on the rebound transforming into renewables, Ishares FTES 100 ETF still 30% below February, a few examples even Bank Of American sending out notes that the UK market is desperately under valued and should be payed attention to going 4ward into 2021 , over past month I’ve started loading up with these old UK equities which have been over punished & ignored and very confident going forward especially come February to May when hefty dividends are paid out on the back of good growth.

Bear means that you expect the market to go down. So based on your post you’re very bullish on the UK and LGEN. :wink:


I think the U.K. market - especially 250 cohort - has room to go down. Particularly if we end the EU transition period without a deal.

If that is the case I will look to buy around Feb-March.

I agree with the assessment that many U.K. stocks are significant undervalued.

My mistake With terminology I’m a Bull on UK market that’s what happens lying in bed off nightshift brainfog kicks in sorry & thanks for pointing that out smartypants :+1:


Simply Wall Street shows the share is still undervalued. I might buy a small amount tomorrow.

What are people’s thoughts on how no deal brexit will impact LGEN? I’m 40%+ so considering selling before any potential dip.

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I still like the fundamentals. I’m not adding but I am not selling either. I get a 10% yield to just sit on them and wait