Legal and General's new boss plans 'sustainable growth' after profits slip

06 March 2024 , 12:52

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Antonio Simoes was appointed chief executive of Legal and General in January (Image: No credit)

The new boss of Legal & General has said he's ready to give the company a "fresh perspective" after profits went down.

The company's shares fell after they announced their yearly results were below market expectations. Legal & General reported that their profits before tax dropped from £783 million to £457 million in 2023.

It came after lower profits from the company’s investment management and retail divisions during the year. The retail operation saw gains from a strong insurance operation offset by weakness in fintech. However, the group posted a 10% rise in operating profits from its bulk annuity business, linked to pension schemes.

Antonio Simoes, who became group chief executive in January, said the company is still on track with its plans for the next five years. "We are on course to achieve our five-year targets, and demonstrated resilience in challenging markets to achieve record new business volumes in pension risk transfer, UK annuities and US protection, increasing our store of future profit," he said.

"We must be as ambitious for Legal & General's future as we are proud of our history. This is the right moment to take a fresh perspective, build on our track record and set out a vision for profitable and sustainable growth."

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He mentioned he will share his plans for the company in June.

Matt Britzman of Hargreaves Lansdown, said: "Some may have hoped for a few more details from the new chief executive on his strategy, but investors will have to wait until the announced capital market day in June for more details. The UK is the most mature global market, but L&G has its eyes set further afield. Activity in overseas markets like the US, Canada and the Netherlands is increasing. That gives plenty of scope for L&G to keep growing."

On Wednesday morning, the company's shares were down by 1.2%, costing 242.5p each.

(No credit)

Lawrence Matheson