Gain to date: 0.5% Orig­i­nal en­try point: Buy at 256p, 26 Septem­ber 2017


DE­SPITE A FLAT share price per­for­mance from life in­surer Le­gal & Gen­eral

(LGEN) since we added it to the Great Ideas port­fo­lio, we still be­lieve that the com­pany will de­liver the goods in the longer term.

Its first half re­sults to

30 June re­leased ear­lier this month showed steady progress. Op­er­at­ing profit was up 7% to £1.01bn with an in­crease in its in­terim div­i­dend per share to 4.6p from 4.3p a year ear­lier.

One rea­son we like the com­pany is its abil­ity to bol­ster its cap­i­tal po­si­tion as nega­tive shifts in life ex­pectancy re­duce the amount it has to hold to cover an­nu­ity pay­ments.

Chief ex­ec­u­tive Nigel Wil­son says the com­pany is re­view­ing its ‘long term mor­tal­ity as­sump­tions’ and will make a full re­lease in the sec­ond half which will ex­ceed the £332m re­leased in 2017.

The com­pany is ac­tive in the pen­sion risk trans­fer mar­ket, tak­ing on bulk an­nu­ities from com­pa­nies.

Ac­cord­ing to Trevor Moss, an­a­lyst at in­vest­ment bank Beren­berg, only a ‘mod­est’ amount of risk trans­fer busi­ness was com­pleted in the first half.

How­ever, the sec­ond half could be a dif­fer­ent story as it has a £7bn deal pipe­line which it ex­pects to com­plete dur­ing the pe­riod.

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