- Legal & General Group
- 12 June 2024 07:26:32
Source: Sharecast
"The strategy and targets set out today signal L&G's ambition and commitment to invest to grow our business, and reward our shareholders for their support," said chief executive António Simões.
The company said it intends to return more to shareholders over 2024 to 2027, with 5% dividend growth in 2024 followed by 2% growth per annum, in addition to further share repurchases.
L&G also announced a new target of 6-9% compound annual growth in core operating earnings per share over the three-year period, at an operating return on equity of more than 20%.
Following a five-month review, the company has decided to create a single Asset Management division, bringing LGIM (Legal & General Investment Management) and LGC (Legal & General Capital) under one roof. The other two divisions will be Institutional Retirement and Retail.
"Over the last five months we have rigorously reviewed our business, listening to investors, customers, partners and employees. This work has deepened my belief in our strong foundations and excellent potential," Simões said.
"By seizing the opportunity in Institutional Retirement while investing to scale and deepen our capabilities in Asset Management and Retail, we will evolve our business to better address society's changing investment needs, and shift towards fee-based earnings at higher returns on capital. We will make the most of our international business opportunities, with a particular focus on the US," Simões said.