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Legal & General Group

LSE:LGEN
Snowflake Description

6 star dividend payer and undervalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LGEN
LSE
£17B
Market Cap
  1. Home
  2. GB
  3. Insurance
Company description

Legal & General Group Plc provides various insurance products and services worldwide. The last earnings update was 36 days ago. More info.


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LGEN Share Price and Events
7 Day Returns
1.5%
LSE:LGEN
3.8%
GB Insurance
1.9%
GB Market
1 Year Returns
5.8%
LSE:LGEN
-4.5%
GB Insurance
2.5%
GB Market
LGEN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Legal & General Group (LGEN) 1.5% 5.2% 13.3% 5.8% 19.1% 40.3%
GB Insurance 3.8% 3.5% 10.1% -4.5% 14.3% 23.7%
GB Market 1.9% 3% 7.9% 2.5% 15.6% 6.8%
1 Year Return vs Industry and Market
  • LGEN outperformed the Insurance industry which returned -4.5% over the past year.
  • LGEN outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned 2.5% over the past year.
Price Volatility
LGEN
Industry
5yr Volatility vs Market

Value

 Is Legal & General Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Legal & General Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Legal & General Group.

LSE:LGEN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 8 analysts.
= Stable Book Value * Return on Equity
= £1.81 * 19%
£0.34
Book Value of Equity per Share Weighted future Book Value estimates from 6 analysts. £1.81
Discount Rate (Cost of Equity) See below 7.4%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:LGEN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Insurance Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.725 (1 + (1- 19%) (28.64%))
0.928
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.93
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.928 * 6.65%)
7.4%

Discounted Cash Flow Calculation for LSE:LGEN using Excess Returns Model Model

The calculations below outline how an intrinsic value for Legal & General Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

LSE:LGEN Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (19% – 7.4%) * £1.81)
£0.21
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= £0.21 / (7.4% - 1.23%)
£3.40
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= £1.81 + £3.40
£5.21
LSE:LGEN Discount to Share Price
Calculation Result
Value per share (GBP) From above. £5.21
Current discount Discount to share price of £2.91
= -1 x (£2.91 - £5.21) / £5.21
44.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Legal & General Group is available for.
Intrinsic value
44%
Share price is £2.91 vs Future cash flow value of £5.21
Current Discount Checks
For Legal & General Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Legal & General Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Legal & General Group's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Legal & General Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Legal & General Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:LGEN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.30
LSE:LGEN Share Price ** LSE (2019-04-18) in GBP £2.91
United Kingdom of Great Britain and Northern Ireland Insurance Industry PE Ratio Median Figure of 19 Publicly-Listed Insurance Companies 16.26x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 796 Publicly-Listed Companies 16.29x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Legal & General Group.

LSE:LGEN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:LGEN Share Price ÷ EPS (both in GBP)

= 2.91 ÷ 0.30

9.8x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Legal & General Group is good value based on earnings compared to the GB Insurance industry average.
  • Legal & General Group is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Legal & General Group's expected growth come at a high price?
Raw Data
LSE:LGEN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 9.8x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
3.2%per year
United Kingdom of Great Britain and Northern Ireland Insurance Industry PEG Ratio Median Figure of 16 Publicly-Listed Insurance Companies 1.54x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 563 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

LSE:LGEN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 9.8x ÷ 3.2%

3.1x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Legal & General Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Legal & General Group's assets?
Raw Data
LSE:LGEN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £1.45
LSE:LGEN Share Price * LSE (2019-04-18) in GBP £2.91
United Kingdom of Great Britain and Northern Ireland Insurance Industry PB Ratio Median Figure of 24 Publicly-Listed Insurance Companies 2.12x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,365 Publicly-Listed Companies 1.51x
LSE:LGEN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:LGEN Share Price ÷ Book Value per Share (both in GBP)

= 2.91 ÷ 1.45

2.01x

* Primary Listing of Legal & General Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Legal & General Group is good value based on assets compared to the GB Insurance industry average.
X
Value checks
We assess Legal & General Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. Legal & General Group has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Legal & General Group expected to perform in the next 1 to 3 years based on estimates from 8 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
3.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Legal & General Group expected to grow at an attractive rate?
  • Legal & General Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Legal & General Group's earnings growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
  • Legal & General Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:LGEN Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:LGEN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 3.2%
LSE:LGEN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 23%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Earnings Growth Rate Market Cap Weighted Average 11.8%
United Kingdom of Great Britain and Northern Ireland Insurance Industry Revenue Growth Rate Market Cap Weighted Average 18.3%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.9%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:LGEN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:LGEN Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,544
2022-12-31 2,302
2021-12-31 28,618 1,874 1
2020-12-31 27,609 1,486 1,900 1
2019-12-31 25,726 1,395 2,054 1
LSE:LGEN Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 11,362 -361 1,763
2018-09-30 9,315 2,776 1,696
2018-06-30 7,479 5,912 1,628
2018-03-31 9,061 5,162 1,720
2017-12-31 10,431 4,411 1,811
2017-06-30 10,685 3,098 1,409
2017-03-31 14,288 3,594 1,288
2016-12-31 17,890 4,089 1,167
2016-09-30 17,318 5,291 1,231
2016-06-30 15,228 2,237 1,204
2016-03-31 10,967 707 1,140

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Legal & General Group's earnings are expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).
  • Legal & General Group's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:LGEN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below

All data from Legal & General Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:LGEN Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.43 0.43 0.43 1.00
2022-12-31 0.39 0.39 0.39 1.00
2021-12-31 0.31 0.36 0.27 12.00
2020-12-31 0.31 0.43 0.25 15.00
2019-12-31 0.34 0.39 0.28 15.00
LSE:LGEN Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.30
2018-09-30 0.29
2018-06-30 0.27
2018-03-31 0.29
2017-12-31 0.31
2017-06-30 0.24
2017-03-31 0.22
2016-12-31 0.20
2016-09-30 0.21
2016-06-30 0.20
2016-03-31 0.19

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Legal & General Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Legal & General Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Legal & General Group has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Legal & General Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Legal & General Group's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Legal & General Group's year on year earnings growth rate has been positive over the past 5 years.
  • Legal & General Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Legal & General Group's 1-year earnings growth is negative, it can't be compared to the GB Insurance industry average.
Earnings and Revenue History
Legal & General Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Legal & General Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:LGEN Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 11,362.00 1,763.00 38.00
2018-09-30 9,314.50 1,695.50 34.50
2018-06-30 7,479.00 1,628.00 31.00
2018-03-31 9,061.00 1,719.50 31.00
2017-12-31 10,431.00 1,811.00 31.00
2017-06-30 10,685.00 1,409.00 26.00
2017-03-31 14,287.50 1,288.00 26.00
2016-12-31 17,890.00 1,167.00 26.00
2016-09-30 17,318.00 1,231.00 47.50
2016-06-30 15,228.00 1,204.00 49.00
2016-03-31 10,966.50 1,139.50 49.00
2015-12-31 6,705.00 1,075.00 49.00
2015-09-30 9,771.50 1,049.00 51.50
2015-06-30 12,838.00 1,023.00 54.00
2015-03-31 15,282.50 1,004.00 54.00
2014-12-31 17,727.00 985.00 54.00
2014-09-30 15,415.50 960.00 51.00
2014-06-30 13,104.00 935.00 48.00
2014-03-31 10,839.00 914.00 48.00
2013-12-31 8,574.00 893.00 48.00
2013-09-30 9,645.00 879.00 47.50
2013-06-30 10,716.00 865.00 47.00
2013-03-31 11,015.00 837.50 47.00
2012-12-31 11,314.00 810.00 47.00
2012-09-30 10,537.50 790.50 46.50
2012-06-30 9,761.00 771.00 46.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Legal & General Group has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • Legal & General Group used its assets less efficiently than the GB Insurance industry average last year based on Return on Assets.
  • Legal & General Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Legal & General Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Legal & General Group has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Legal & General Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Legal & General Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Legal & General Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Legal & General Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Legal & General Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 9.8x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Legal & General Group Company Filings, last reported 3 months ago.

LSE:LGEN Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 8,652.00 4,948.00 17,321.00
2018-09-30 8,652.00 4,948.00 17,321.00
2018-06-30 7,778.00 4,446.00 20,178.00
2018-03-31 7,778.00 4,446.00 20,178.00
2017-12-31 7,592.00 3,997.00 18,919.00
2017-06-30 7,565.00 32,128.00 15,805.00
2017-03-31 7,565.00 32,128.00 15,805.00
2016-12-31 7,283.00 31,091.00 30,360.00
2016-09-30 7,283.00 31,051.00 40,684.00
2016-06-30 6,883.00 20,770.00 18,956.00
2016-03-31 6,883.00 20,770.00 18,956.00
2015-12-31 6,693.00 20,412.00 30,734.00
2015-09-30 6,693.00 20,412.00 30,734.00
2015-06-30 6,313.00 12,635.00 19,583.00
2015-03-31 6,313.00 12,635.00 19,583.00
2014-12-31 6,303.00 14,418.00 32,744.00
2014-09-30 6,303.00 14,418.00 32,744.00
2014-06-30 5,982.00 3,683.00 21,087.00
2014-03-31 5,982.00 3,683.00 21,087.00
2013-12-31 5,907.00 8,184.00 21,816.00
2013-09-30 5,907.00 8,184.00 21,816.00
2013-06-30 5,563.00 3,415.00 16,759.00
2013-03-31 5,563.00 3,415.00 16,759.00
2012-12-31 5,480.00 7,192.00 23,157.00
2012-09-30 5,480.00 7,192.00 23,157.00
2012-06-30 5,224.00 3,262.00 16,757.00
  • Legal & General Group's level of debt (57.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (137.7% vs 57.2% today).
  • Operating cash flow is negative therefore debt is not well covered.
  • Interest payments on debt are well covered by earnings (EBIT is 11.4x coverage).
X
Financial health checks
We assess Legal & General Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Legal & General Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Legal & General Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.64%
Current annual income from Legal & General Group dividends. Estimated to be 6.49% next year.
If you bought £2,000 of Legal & General Group shares you are expected to receive £113 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Legal & General Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.02%).
  • Legal & General Group's dividend is above the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.19%).
Upcoming dividend payment

Purchase Legal & General Group before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:LGEN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Insurance Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 4.5%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.2%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:LGEN Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.23 1.00
2022-12-31 0.22 1.00
2021-12-31 0.20 13.00
2020-12-31 0.19 15.00
2019-12-31 0.18 14.00
LSE:LGEN Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-03-14 0.164 5.850
2019-03-06 0.164 6.010
2018-03-07 0.154 5.945
2017-03-08 0.144 5.505
2016-03-15 0.134 6.002
2015-04-15 0.113 4.448
2015-03-04 0.113 3.950
2014-04-16 0.093 3.918
2014-03-05 0.093 4.279
2013-03-07 0.077 3.917
2012-08-07 0.067 4.721
2012-03-15 0.064 5.251
2011-08-03 0.051 4.794
2011-03-17 0.048 4.099
2010-03-23 0.038 4.045
2009-04-20 0.041 5.744

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Legal & General Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.6x coverage).
X
Income/ dividend checks
We assess Legal & General Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Legal & General Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Legal & General Group has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Legal & General Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Nigel Wilson
COMPENSATION £3,289,000
AGE 62
TENURE AS CEO 6.8 years
CEO Bio

Dr. Nigel David Wilson serves as Group Chief Executive of Legal & General Group Plc since 2012 and serves as its Director since September 2009. Dr. Wilson joined Legal & General Group Plc as Chief Financial officer in 2009. He was Senior Independent Director (“SID”) of The Capita Group plc from 2009 until 2012, and was SID/Chairman of Halfords Group Plc from 2006 until 2011. Previous appointments include: McKinsey & Co, (where clients included BP, Citibank, Cadbury, Santander, Kingfisher, Courtaulds, Whitbread and Globe Investment Trust). Group Commercial Director of Dixons Group Plc; Managing Director of Stanhope Properties Plc; Chief Executive, Corporate, Guinness Peat Aviation (G.P.A.); and Managing Director, Viridian Capital. He was also Deputy Chief Executive and Chief Financial Officer at UBM. He serves as Chairman and Chief Executive Officer of Legal & General Assurance Society Limited. He was appointed to the Prime Minister’s Business Advisory Group in 2015. Qualifications include a PhD from the Massachusetts Institute of Technology where he was a Kennedy Scholar, and a recipient of the Alfred P Sloan research scholarship. He also worked at the National Bureau of Economic Research (NBER). He has won numerous athletics championships including the 800m British Masters. He was also City AM “Business Personality of the Year” in 2014.

CEO Compensation
  • Nigel's compensation has been consistent with company performance over the past year.
  • Nigel's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure of the Legal & General Group management team in years:

4.5
Average Tenure
  • The tenure for the Legal & General Group management team is about average.
Management Team

Nigel Wilson

TITLE
Group CEO & Director
COMPENSATION
£3M
AGE
62
TENURE
6.8 yrs

Jeff Davies

TITLE
Group CFO & Director
COMPENSATION
£1M
TENURE
2.1 yrs

Mark Zinkula

TITLE
CEO of Legal & General Investment Management and Director
COMPENSATION
£2M

Kerrigan Procter

TITLE
CEO of Legal & General Capital and Director
COMPENSATION
£2M
AGE
49

Ed Houghton

TITLE
Head Investor Relations
TENURE
0.2 yrs

Geoffrey Timms

TITLE
Group General Counsel & Company Secretary
TENURE
20.3 yrs

Richard King

TITLE
Head of Group Corporate Communications

Emma Hardaker-Jones

TITLE
Group Human Resources Director
TENURE
1.6 yrs

Simon Gadd

TITLE
Group Chief Risk Officer
TENURE
12.9 yrs

Sharon Niebergall

TITLE
Head of Business Management
Board of Directors Tenure

Average tenure and age of the Legal & General Group board of directors in years:

2.6
Average Tenure
57
Average Age
  • The average tenure for the Legal & General Group board of directors is less than 3 years, this suggests a new board.
Board of Directors

John Oliver Kingman

TITLE
Chairman of the Board
COMPENSATION
£467K
AGE
49
TENURE
2.5 yrs

Nigel Wilson

TITLE
Group CEO & Director
COMPENSATION
£3M
AGE
62
TENURE
9.6 yrs

Jeff Davies

TITLE
Group CFO & Director
COMPENSATION
£1M
TENURE
1.9 yrs

Mark Zinkula

TITLE
CEO of Legal & General Investment Management and Director
COMPENSATION
£2M
TENURE
6.6 yrs

Kerrigan Procter

TITLE
CEO of Legal & General Capital and Director
COMPENSATION
£2M
AGE
49
TENURE
2.1 yrs

Lesley Mary Knox

TITLE
Non-Executive Director
COMPENSATION
£116K
AGE
65
TENURE
2.8 yrs

Philip John Broadley

TITLE
Independent Non-Executive Director
COMPENSATION
£116K
AGE
57
TENURE
2.8 yrs

Toby Strauss

TITLE
Independent Non-Executive Director
COMPENSATION
£117K
AGE
58
TENURE
2.3 yrs

Julia Wilson

TITLE
Senior Independent Non-Executive Director
COMPENSATION
£115K
TENURE
2.9 yrs

Henrietta Baldock

TITLE
Independent Non-Executive Director
COMPENSATION
£103K
AGE
47
TENURE
0.5 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Legal & General Group insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
01. Apr 19 Buy John Oliver Kingman Individual 01. Apr 19 01. Apr 19 1,550 £2.77 £4,287
01. Apr 19 Buy Toby Strauss Individual 01. Apr 19 01. Apr 19 995 £2.77 £2,752
01. Apr 19 Buy John Oliver Kingman Individual 01. Apr 19 01. Apr 19 592 £2.77 £1,641
01. Mar 19 Buy John Oliver Kingman Individual 01. Mar 19 01. Mar 19 577 £2.85 £1,644
01. Mar 19 Buy John Oliver Kingman Individual 01. Mar 19 01. Mar 19 1,506 £2.84 £4,284
01. Mar 19 Buy Toby Strauss Individual 01. Mar 19 01. Mar 19 966 £2.84 £2,748
01. Feb 19 Buy John Oliver Kingman Individual 01. Feb 19 01. Feb 19 630 £2.61 £1,643
01. Feb 19 Buy John Oliver Kingman Individual 01. Feb 19 01. Feb 19 1,646 £2.60 £4,284
01. Feb 19 Buy Toby Strauss Individual 01. Feb 19 01. Feb 19 1,057 £2.60 £2,751
03. Jan 19 Buy John Oliver Kingman Individual 02. Jan 19 02. Jan 19 1,537 £2.27 £3,493
03. Jan 19 Buy Toby Strauss Individual 02. Jan 19 02. Jan 19 1,210 £2.27 £2,750
03. Jan 19 Buy John Oliver Kingman Individual 03. Jan 19 03. Jan 19 714 £2.30 £1,644
03. Dec 18 Buy Carolyn Bradley Individual 03. Dec 18 03. Dec 18 687 £2.50 £1,716
03. Dec 18 Buy John Oliver Kingman Individual 03. Dec 18 03. Dec 18 1,399 £2.50 £3,495
03. Dec 18 Buy Toby Strauss Individual 03. Dec 18 03. Dec 18 1,101 £2.50 £2,750
03. Dec 18 Buy John Oliver Kingman Individual 03. Dec 18 03. Dec 18 660 £2.49 £1,641
01. Nov 18 Buy John Oliver Kingman Individual 01. Nov 18 01. Nov 18 644 £2.55 £1,644
01. Nov 18 Buy Carolyn Bradley Individual 01. Nov 18 01. Nov 18 685 £2.50 £1,715
01. Nov 18 Buy John Oliver Kingman Individual 01. Nov 18 01. Nov 18 1,396 £2.50 £3,496
01. Nov 18 Buy Toby Strauss Individual 01. Nov 18 01. Nov 18 1,099 £2.50 £2,752
01. Oct 18 Buy Carolyn Bradley Individual 01. Oct 18 01. Oct 18 653 £2.63 £1,715
01. Oct 18 Buy John Oliver Kingman Individual 01. Oct 18 01. Oct 18 1,456 £2.63 £3,823
01. Oct 18 Buy Toby Strauss Individual 01. Oct 18 01. Oct 18 1,047 £2.63 £2,749
01. Oct 18 Buy John Oliver Kingman Individual 01. Oct 18 01. Oct 18 625 £2.63 £1,643
03. Sep 18 Buy Carolyn Bradley Individual 03. Sep 18 03. Sep 18 669 £2.57 £1,716
03. Sep 18 Buy John Oliver Kingman Individual 03. Sep 18 03. Sep 18 1,490 £2.57 £3,822
03. Sep 18 Buy Toby Strauss Individual 03. Sep 18 03. Sep 18 1,072 £2.57 £2,750
03. Sep 18 Buy John Oliver Kingman Individual 03. Sep 18 03. Sep 18 644 £2.57 £1,653
01. Aug 18 Buy John Oliver Kingman Individual 01. Aug 18 01. Aug 18 626 £2.62 £1,643
01. Aug 18 Buy Carolyn Bradley Individual 01. Aug 18 01. Aug 18 654 £2.62 £1,715
01. Aug 18 Buy John Oliver Kingman Individual 01. Aug 18 01. Aug 18 1,458 £2.62 £3,824
01. Aug 18 Buy Toby Strauss Individual 01. Aug 18 01. Aug 18 958 £2.62 £2,513
02. Jul 18 Buy Carolyn Bradley Individual 02. Jul 18 02. Jul 18 651 £2.63 £1,714
02. Jul 18 Buy John Oliver Kingman Individual 02. Jul 18 02. Jul 18 1,452 £2.63 £3,823
02. Jul 18 Buy Toby Strauss Individual 02. Jul 18 02. Jul 18 954 £2.63 £2,512
02. Jul 18 Buy John Oliver Kingman Individual 02. Jul 18 02. Jul 18 627 £2.62 £1,641
28. Jun 18 Buy John Oliver Kingman Individual 08. Jun 18 08. Jun 18 305 £2.71 £828
01. Jun 18 Buy Carolyn Bradley Individual 01. Jun 18 01. Jun 18 631 £2.72 £1,715
01. Jun 18 Buy John Oliver Kingman Individual 01. Jun 18 01. Jun 18 1,408 £2.72 £3,826
01. Jun 18 Buy Toby Strauss Individual 01. Jun 18 01. Jun 18 925 £2.72 £2,514
01. Jun 18 Buy John Oliver Kingman Individual 01. Jun 18 01. Jun 18 601 £2.73 £1,644
01. May 18 Buy Carolyn Bradley Individual 01. May 18 01. May 18 631 £2.72 £1,717
01. May 18 Buy John Oliver Kingman Individual 01. May 18 01. May 18 1,405 £2.72 £3,822
01. May 18 Buy Toby Strauss Individual 01. May 18 01. May 18 923 £2.72 £2,511
01. May 18 Buy John Oliver Kingman Individual 01. May 18 01. May 18 603 £2.73 £1,643
X
Management checks
We assess Legal & General Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Legal & General Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Be Impressed By Legal & General Group Plc's (LON:LGEN) ROE?

To keep the lesson grounded in practicality, we'll use ROE to better understand Legal & General Group Plc (LON:LGEN). … Legal & General Group has a ROE of 20%, based on the last twelve months. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Are You An Income Investor? Don't Miss Out On Legal & General Group Plc (LON:LGEN)

There is a lot to be liked about Legal & General Group Plc (LON:LGEN) as an income stock. … Let's dig deeper into whether Legal & General Group should have a place in your portfolio. … See our latest analysis for Legal & General Group

Simply Wall St -

Legal & General Group Plc (LON:LGEN): What Can We Expect From This High Growth Stock?

Legal & General Group Plc's (LON:LGEN) most recent earnings announcement in December 2018a

Simply Wall St -

What Did Legal & General Group Plc's (LON:LGEN) CEO Take Home Last Year?

Nigel Wilson has been the CEO of Legal & General Group Plc (LON:LGEN) since 2012. … Check out our latest analysis for Legal & General Group … How Does Nigel Wilson's Compensation Compare With Similar Sized Companies?

Simply Wall St -

These Factors Make Legal & General Group Plc (LON:LGEN) An Interesting Investment

Legal & General Group Plc (LON:LGEN) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of LGEN, it

Simply Wall St -

Is There Now An Opportunity In Legal & General Group Plc (LON:LGEN)?

received a lot of attention from a substantial price movement on the LSE over the last few months, increasing to £2.63 at one point, and dropping to the lows of £2.24. … A question to answer is whether Legal & General Group's current trading price of £2.35 reflective of the actual value of the? … Let’s take a look at Legal & General Group’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Boasting A 21% Return On Equity, Is Legal & General Group Plc (LON:LGEN) A Top Quality Stock?

Legal & General Group has a ROE of 21%, based on the last twelve months. … That means that for every £1 worth of shareholders' equity, it generated £0.21 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Makes Legal & General Group Plc (LON:LGEN) A Great Dividend Stock?

Legal & General Group Plc (LON:LGEN) has pleased shareholders over the past 10 years, by paying out dividends. … Let's dig deeper into whether Legal & General Group should have a place in your portfolio. … See our latest analysis for Legal & General Group

Simply Wall St -

Legal & General Group Plc (LON:LGEN): Secrets For Long Term Investors

Legal & General Group Plc is a financially healthy and robust stock with a proven track record of outperformance. … We all know Legal & General Group, and having this large-cap to cushion your portfolio during a volatile period in the stock market isn't a bad idea. … Legal & General Group Plc provides various insurance products and services worldwide

Simply Wall St -

Why Legal & General Group Plc's (LON:LGEN) CEO Salary Matters To You

First, this article will compare CEO compensation with compensation at other large companies. … How Does Nigel Wilson's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Legal & General Group Plc has a market cap of UK£15.3b, and is paying total annual CEO compensation of UK£3m.

Simply Wall St -

Company Info

Description

Legal & General Group Plc provides various insurance products and services worldwide. It operates in Legal & General Retirement (LGR), Legal & General Investment Management (LGIM), Legal & General Capital (LGC), Legal & General Insurance (LGI), and General Insurance (GI) segments. The LGR segment offers annuity contracts with guaranteed income for a specified time; longevity insurance products for company pension schemes; and lifetime mortgages. The LGIM segment provides index fund management; active fixed income and liquidity management; solution and liability driven investment; active equity; corporate pension scheme solutions; and real estate funds. The LGC segment offers investment strategy and implementation, and direct investment and structuring services. The LGI segment protection products, such as health, disability, critical illness and accident; individual term assurance; savings and death benefits; and annuities. The GI segment provides household and accident, sickness, unemployment, and pet insurance products. The company is also involved in insurance agency and brokerage, unit trust, institutional fund management, distribution, mortgage finance, treasury, SPV, building project and modular housing development, general insurance, and open ended investment businesses. It also engages in the real estate investment and trading, fund general partner, fund trustee, long term, commercial lending, venture and development capital, contractual scheme, real estate agency, private equity, management, investor alternative investment fund, collective asset-management, reinsurance, and investment management activities, as well as provides investment advisory and property services. The company was founded in 1836 and is based in London, the United Kingdom.

Details
Name: Legal & General Group Plc
LGEN
Exchange: LSE
Founded: 1836
£17,278,116,748
5,933,419,213
Website: http://www.legalandgeneralgroup.com
Address: Legal & General Group Plc
One Coleman Street,
London,
Greater London, EC2R 5AA,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE LGEN Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK LGGN.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB LGI Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BATS-CHIXE LGENL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
OTCPK LGGN.Y SPONSORED ADR Pink Sheets LLC US USD 18. Oct 1995
Number of employees
Current staff
Staff numbers
7,981
Legal & General Group employees.
Industry
Life and Health Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 20:40
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/18
Last earnings filing: 2019/03/14
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.