Legal & General (LGEN.L), a prominent asset manager and insurer, saw its shares climb by more than 5% on Thursday. This surge followed a Financial Times report suggesting building buying interest in the company, despite comments from CEO Antonio Simoes stating that L&G was not considering a sale. The company’s shares were on track for their largest one-day jump since December 2024, reaching 5.3% higher by 0909 GMT, significantly outperforming the FTSE 350 index of insurer stocks which rose 1.7%.
The Financial Times article cited growing interest from potential bidders amidst emerging questions about L&G’s future as a public company. An insider quoted by the newspaper indicated that certain divisions within L&G are actively working to address structural issues. CEO Antonio Simoes has previously outlined a strategy aimed at improving performance and boosting investor returns through simplifying the business and expanding its capital-light asset management and retail divisions. He has also expressed a commitment to double the company’s assets under management in Asia to approximately $500 billion, as part of a broader international growth push.
Legal & General posted a 6% increase in annual core profit and launched a £1.2 billion ($1.6 billion) share buyback programme in March. However, these results fell short of analyst expectations for some key earnings metrics, including core operating profit, which stood at £1.62 billion, slightly below forecasts. The company’s Solvency II cover ratio, a crucial measure of financial strength, also missed predictions at 210%, down from 232%. A spokesperson for Legal & General declined to comment on the Financial Times report.
