Valuation - Legal & General Group PLC
A Valuation of Legal & General Group PLC (LON: LGEN) on 30 October 2020
A Valuation of Legal & General Group PLC (LON: LGEN) on 30 October 2020
The Summary
Legal & General Group PLC is a UK incorporated, based and listed multinational financial services company. LGIM, the asset management arm of L&G, is the 14th largest investment management firm in the world by AUM and is also the second-largest institutional investment management firm in Europe (after BlackRock).
The Story
Legal & General has 4 main businesses: Retirement (LGR), Investment Management (LGIM), Capital (LGC), and Insurance (LGI). Over the last decade, LGEN has transformed from a modest-return (~14.6% ROE), low-growth insurance and investment business into a higher-return (~21.1% ROE), higher-growth retirement annuities and investment management business. They sold off the Savings business in 2017 and the final part of the general insurance business more recently. Since then, the firm has continued to rapidly grow the Retirement Annuities business across the core UK and now US markets.
The pande…