New Legal & General boss promises ‘fresh perspective’ as profits slip

The new boss of Legal & General has said he aims to bring a “fresh perspective” after the FTSE 100 company posted lower profits.

Shares dropped in early trading on Wednesday as the investment and pensions giant saw its annual results miss market expectations.

The group told shareholders that pre-tax profits tumbled by more than 40% to £457 million in 2023 from £783 million a year earlier.

It came after lower profits from the company’s investment management and retail divisions during the year.

The retail operation saw gains from a strong insurance operation offset by weakness in fintech.

However, the group posted a 10% rise in operating profits from its bulk annuity business, linked to pension schemes.

Antonio Simoes, who took over as group chief executive from Sir Nigel Wilson in January, said the business is still on track with its current five-year strategy.

“We are on course to achieve our five-year targets, and demonstrated resilience in challenging markets to achieve record new business volumes in pension risk transfer, UK annuities and US protection, increasing our store of future profit,” he said.

“We must be as ambitious for Legal & General’s future as we are proud of our history. This is the right moment to take a fresh perspective, build on our track record and set out a vision for profitable and sustainable growth.”

He said he will outline his strategy for the business at an event in June.

Matt Britzman, equity analyst at Hargreaves Lansdown, said: “Some may have hoped for a few more details from the new chief executive on his strategy, but investors will have to wait until the announced capital market day in June for more details.

“The UK is the most mature global market, but L&G has its eyes set further afield.

“Activity in overseas markets like the US, Canada and the Netherlands is increasing. That gives plenty of scope for L&G to keep growing.”

Shares in the business were 1.2% lower at 242.5p on Wednesday morning.