Legal & General Grp (LGEN) - New Structure for International Businesses
RNS Number : 7868O
Legal & General Group Plc
16 October 2012
LEGAL & General Group Plc announces NEW structure for its international
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."
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.
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
Further details of our Group Executive Directors can be found at the following
Nigel Wilson (CEO of L&G Group plc);
John Pollock (CEO of Risk);
Mark Gregory (CEO of Savings);
Mark Zinkula (CEO of LGIM);
Kate Vennell Head of Investor
Relations 020 3124 2150
Ian Baker Investor Relations
Manager 020 3124 2047
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
MSCUNRKRUSARARA -0- Oct/16/2012 10:00 GMT
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