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Legal & General Grp LGEN New Structure for International Businesses

  Legal & General Grp (LGEN) - New Structure for International Businesses

RNS Number : 7868O
Legal & General Group Plc
16 October 2012




PressRelease

16October 2012

LEGAL &  General  Group Plc  announces  NEW structure  for  its  international 
businesses.

L&G  sees  substantial   opportunities  to  accelerate   the  growth  of   our 
international businesses using many of the capabilities and synergies from our
market leading  UK  businesses.  We  are already  making  progress  on  this 
strategy; LGIM now  manages £34.5bn  (as at  30 June  2012) for  international 
clients and L&G  America (LGA) achieved  new business premiums  of $66m in  H1 
2012, a  growth  rate of  27%  in new  business  sales compared  to  H1  2011. 
International businesses contributed  £134m operating profit  in 2011, up  31% 
from 2010, and dividend remittances  to Group have consequently grown.  Since 
2009, LGA has paid $165m of ordinary dividends and L&G Netherlands contributed
a special  dividend  of €35m  in  2011. As  announced  to the  market  on  25 
September 2012, we continue to  progress our capital efficiency programme  for 
LGA, which to date has achieved $390m of capital relief.

The platform for our International growth has been overseen by Gareth  Hoskin, 
who is  now retiring  after 18  years of  service at  L&G. To  build on  this 
platform and to reinforce  L&G's ability to  leverage its existing  expertise, 
the responsibility for the strategic development of our international business
will be led by  L&G's Executive Directors, working  in partnership with  local 
Managing Directors, from 1st November 2012.

international new structure from 1 november 2012:

John Pollock,  CEO of  Risk,  will assume  additional responsibility  for  L&G 
Netherlands and L&G France. These European subsidiaries have demonstrated  the 
potential to grow  their protection  businesses and will  benefit from  closer 
alignment with our market leading UK  Risk businesses as they develop  further 
scale. John Pollock has done an outstanding  job in the UK Risk business,  in 
individual and group protection and  annuities. This business manages a  book 
of over £1.5bn insurance premiums together with an annuity portfolio of £29bn,
and delivered £561m of IFRS operating profit in 2011.



Mark Gregory, CEO of Savings, will take responsibility for development of  our 
Indian JV "IndiaFirst", launched in 2009  with two of the country's  strongest 
public sector  banks; Bank  of  Baroda and  Andhra  Bank. Mark  Gregory  will 
develop this model, sharing  best practice from  our leading UK  bancassurance 
franchise. Mark  has transformed  the  UK Savings  business from  a  business 
making £7m IFRS operating profit in 2008  to one making £128m in 2011.  L&G's 
leading RDR ready  platform solution  has been  selected by  the UK's  leading 
building societies, who cover between them 86% of building society customers.



International expansion is a key objective for LGIM, our investment management
business. Mark Zinkula, CEO of LGIM,  is leading LGIM's expansion and in  the 
United States, as at H1 2012, LGIMA has secured 10 mandate wins this year  and 
has $28bn  of  US funds  under  management.  Plans to  extend  operations  in 
European and Asian markets continue to make progress.



Nigel Wilson will continue  to work closely  with the US team  of LGA, led  by 
Jimmy Atkins (President and CEO of LGA), and to direct the development of  our 
emerging retail models in the Gulf and North African regions.



Commenting on the changes, Nigel Wilson, CEO, said:
"Maximising growth and shareholder value from our chosen international markets
by leveraging our established capabilities is a core part of our strategy. The
new structure  will  bring  focus  and alignment  to  the  delivery  of  these 
ambitions. I would like to  thank Gareth Hoskin for  his role in developing  a 
strong platform for the next phase of L&G's international growth."

Compensation Arrangements:

To reflect the increase in their direct responsibilities, the salaries of John
Pollock and Mark Gregory will increase by £30,000 and £32,000 respectively
meaning their base salaries will be £450,000 from 1 November 2012.
L&G aims to maintain transparent remuneration structures and we regularly
review all remuneration structures, policies and reporting in light of any
changes to best practice including any potentially resulting from the
Department for Business, Innovation and Skills' consultation papers.

About Legal & General

Established in 1836, Legal  & General is a  leading provider of risk,  savings 
and investment management  products in  the UK. In  the first  six months  of 
2012, Legal & General's profits before tax (on the IFRS basis) were £525m,  up 
11% from the  prior year.  Earnings per share  were 6.96p  and dividends  per 
share were 1.96p for the period, an increase of 14% and 18%, respectively. The
Group has over seven million customers in the UK for life assurance, pensions,
investments          and          general          insurance           plans. 
(http://investor.legalandgeneral.com/business-description.cfm)



Our investment management business, LGIM, is responsible for investing  £381bn 
worldwide (as  at 30  June 2012)  on behalf  of investors,  policyholders  and 
shareholders. LGIM is one  of the largest investors  in the UK stock  market, 
managing around 5%  of all London  listed equities. LGIM  has market  leading 
capability in index, active fixed income and liability driven investments  and 
(as at 30 June 2012) manages £34.5bn of assets for international clients.



Our UK  Risk business  insures customers'  potential financial  exposure  from 
death, illness, injury or household damage, and provides retirement  annuities 
for individuals  and  pension schemes.  In  2011, Risk  collected  £1.5bn  of 
insurance premiums and manages an annuity portfolio of £29bn (H1 2012).



Our UK Savings business has £67bn (H1 2012) of assets under administration and
provides a range of retail savings funds and savings structures to individuals
and workplace clients.



LGA writes  protection products  in the  US market,  focusing on  higher  sums 
assured policies and in 2011 had in-force premiums of approximately $836m  (FY 
2011).



Further details of our Group Executive Directors can be found at the following
links:

Nigel Wilson (CEO of L&G Group plc);
http://investor.legalandgeneral.com/group-board.cfm?showbio=25327

John             Pollock              (CEO              of              Risk); 
http://investor.legalandgeneral.com/group-board.cfm?showbio=4844

Mark             Gregory             (CEO             of             Savings); 
(http://investor.legalandgeneral.com/group-board.cfm?showbio=23321)

Mark             Zinkula              (CEO              of              LGIM); 
(http://investor.legalandgeneral.com/group-board.cfm?showbio=39806)



Enquiries

    Investors:

Kate Vennell Head of Investor
Relations 020 3124 2150

Ian Baker Investor Relations
Manager 020 3124 2047

    Media:

John Godfrey Group Communications
Director 020 3124 2090

Richard King Head of Media
Relations 020 3124 2095



Financial Calendar 2012/2013              Date


Q3 Interim Management Statement 2012 1 November 2012
Preliminary Results 2012                6 March 2013

Forward looking statements

This document may contain certain forward-looking statements relating to Legal
& General Group, its plans and its current goals and expectations relating  to 
future  financial  condition,  performance   and  results.  By  their   nature 
forward-looking statements involve uncertainty  because they relate to  future 
events  and  circumstances  which  are  beyond  Legal  &  General's   control, 
including,  among  others,  UK  domestic  and  global  economic  and  business 
conditions, market related risks  such as fluctuations  in interest rates  and 
exchange rates,  the  policies  and actions  of  regulatory  and  Governmental 
authorities, the impact of competition, the timing impact of these events  and 
other uncertainties  of future  acquisition  or combinations  within  relevant 
industries. As  a result,  Legal &  General Group's  actual future  condition, 
performance and  results  may differ  materially  from the  plans,  goals  and 
expectations set out in these  forward-looking statements and persons  reading 
this announcement  should not  place reliance  on forward-looking  statements. 
These forward-looking statements are  made only as at  the date on which  such 
statements are made and Legal & General Group Plc does not undertake to update
forward-looking  statements   contained  in   this  document   or  any   other 
forward-looking statement it may make.

                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


MSCUNRKRUSARARA -0- Oct/16/2012 10:00 GMT
 
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