L&G jumps on buyer interest report; CEO says not considering sale
Market Reaction and Company Response
LONDON, May 14 (Reuters) - Legal and General shares rose by more than 5% on Thursday after the Financial Times reported that possible buying interest was building, while quoting its CEO Antonio Simoes as saying the asset manager was not considering a sale.
Growing Buyer Interest
Interest from potential bidders for L&G has been growing as questions about its future as a public company have emerged, the FT reported. It cited a current insider who said that some parts of L&G were trying hard to address structural issues.
Company's Official Stance
A spokesperson for L&G, whose shares were on track for their biggest one-day jump since December 2024, declined to comment on the FT report on Thursday.
CEO's Strategy and Outlook
Simoes has pledged to improve performance and boost investor returns by simplifying L&G and expanding its capital-light asset management and retail divisions. In October, he told Reuters he had work to do to convince investors about its strategy.
International Expansion Plans
He told Reuters last month that L&G aims to double its assets under management in Asia to around $500 billion as it seeks to grow its international business.
Financial Performance
Share Performance
Shares in L&G were up 5.3% at 0909 GMT, compared with a 1.7% rise in the FTSE 350 index of insurer stocks. They are now little changed for the year.
Annual Results
L&G posted a 6% rise in annual core profit and launched a 1.2-billion-pound ($1.6 billion) share buyback in March, but missed analyst expectations for some other key earnings metrics.
Key Metrics
It reported a core operating profit of 1.62 billion pounds, slightly below analyst expectations, while its Solvency II cover ratio - a key metric of financial strength - was 210%, down from 232%; that also missed forecasts.
(Reporting by Sophie Kiderlin and Iain Withers; Editing by Amanda Cooper and Alexander Smith)
