£200m Share Buyback and 5% Dividend Increase by 2024 Outlined in New Plan
- Legal & General plans a £200 million share buyback and 5% dividend growth by 2024
- New strategy focuses on three core divisions: institutional retirement, retail, and asset management
- Targets between 6-9% core operating earnings per share growth by 2027
- Earnings targets prompt mixed reactions from analysts
- Shares in FTSE 100 company slip around 3% after update on current trading
Legal & General, a British life insurance, pensions, and investment services provider, has unveiled a new strategy for the next five years. The plan includes a £200 million share buyback and a 5% dividend increase by 2024. The company will focus on three core divisions: institutional retirement, retail, and asset management. It aims for 6-9% core operating earnings per share growth by 2027 with an operating return on equity over 20%. Analysts have mixed reactions to the targets. Shares in the FTSE 100 company slipped around 3% after the announcement.
Factuality Level: 9
Factuality Justification: The article provides accurate and objective information about Legal & General’s new strategy, including details about their plans for share buybacks, dividend increases, business divisions, and growth targets. It also includes reactions from analysts and market responses to the announcement. The information is relevant and well-researched, with no clear signs of sensationalism or personal bias.
Noise Level: 6
Noise Justification: The article provides relevant information about Legal & General’s new strategy, including details on share buybacks, dividend increases, and business restructuring. However, it also includes some repetitive information and brief mentions of unrelated topics such as the CEO’s background and stock market reactions. The article could benefit from more in-depth analysis and exploration of the implications of the company’s plans on various stakeholders.
Public Companies: Legal & General (LGEN), Aviva (AV)
Key People: Antonio Simoes (Chief Executive), Nigel Wilson (Former Chief Executive), Michelle Scrimgeour (Former LGIM Chief), Laura Mason (Former L&G Capital CEO)
Financial Relevance: Yes
Financial Markets Impacted: London-listed group Legal & General’s shares slipped around 3% in early trading in London due to the new strategy announcement.
Financial Rating Justification: The article discusses Legal & General’s plans for a share buyback, dividend increases, and changes to its business divisions, which can impact the company’s financial performance and stock price. This directly relates to financial topics such as investments, asset management, and shareholder payouts, making it financially relevant.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event in the text. The article discusses a financial decision made by Legal & General, a life insurance and pensions provider, to buy back shares and increase dividends for shareholders.
www.wsj.com 
