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1. Company Snapshot

1.a. Company Description

Legal & General Group Plc provides various insurance products and services in the United Kingdom, the United States, and internationally.It operates in four segments: Legal & General Retirement (LGR), Legal & General Investment Management (LGIM), Legal & General Capital (LGC), and Legal & General Insurance (LGI).The LGR segment offers annuity contracts with guaranteed income for a specified time; longevity insurance products; lifetime mortgages; lifetime care plans; retirement interest only mortgages; and workplace savings scheme that provides corporate pension scheme solutions.


The LGIM segment offers index fund management; active fixed income funds and liquidity funds; active equity management; solution and liability driven investment; multi-asset funds; corporate pension scheme solutions; and real assets.The LGC segment provides investment strategy and implementation, and direct investment and structuring services.The LGI segment offers protection products, such as health, disability, critical illness, and accident; individual term assurance; reinsurance; savings and death benefits; and annuities.


It is also involved in the unit trust and institutional fund management, mortgage finance, treasury, building project and modular housing development, general insurance, and open-ended investment businesses.In addition, the company engages in the investment, operation, management, trading, and letting and operation of leased real estate; and construction of commercial buildings, financial intermediation, pension tracing and transfer, insurance agents and brokers, fund general partner, commercial lending, venture capital investing, contractual scheme, investor alternative investment fund, collective asset-management, and investment management activities; and provision of investment advisory, business information consultancy, and technology services.Legal & General Group Plc was founded in 1836 and is headquartered in London, the United Kingdom.

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1.b. Last Insights on LGEN

The recent 3-month performance of Legal & General Group Plc was driven by several positive factors. The company's pension risk transfer deals, finalized in March, demonstrate its ability to navigate complex transactions and secure significant investments. Additionally, the agreement with Britain's biggest pension funds to unlock up to £50bn of investment for UK private firms and major infrastructure projects is a significant development. Furthermore, the signs of progress on US tariff deals in early May offered some reprieve around trade tensions, helping drive stock markets higher. The company's involvement in the Greyfriars regeneration project, a 25-acre regeneration area, also highlights its commitment to community development.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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FTSE 100 Live: Blue-chip index flat; banks and builders on the march

Nov -27

Source: proactiveinvestors.com

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FTSE 100 Live: London index dragged down by ex-divs and tobacco stocks

Nov -27

Source: proactiveinvestors.com

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Insider Spends UK£974k Buying More Shares In Legal & General Group

Nov -06

Source:

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Legal & General plots swoop for NatWest pensions arm Cushon

Oct -11

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The most popular stocks and funds investors bought in September

Oct -08

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Legal & General Group Digital Transformation Strategy Analysis Report 2025: Accelerators, Incubators, and Innovation Programs

Sep -23

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AM Best Maintains Under Review With Developing Implications Status for Credit Ratings of Banner Life Insurance Company and William Penn Life Insurance Company of New York

Sep -18

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Legal & General (LSE:LGEN): Weighing Current Valuation After Recent Share Price Movement

Sep -13

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.32%)

6. Segments

Legal & General Retirement Institutional

Expected Growth: 7.5%

Legal & General Retirement Institutional's 7.5% growth driven by increasing demand for pension de-risking solutions, expansion into new markets, and strong investment performance. Additionally, the segment benefits from the UK's pension reform, which has led to an increase in bulk annuity transactions and longevity swaps. The company's expertise in risk management and strong relationships with pension scheme trustees also contribute to its growth.

Insurance

Expected Growth: 7.0%

Legal & General Group Plc's 7.0% growth in insurance is driven by increasing demand for protection products, expansion into new markets, and strategic partnerships. Additionally, the company's digital transformation efforts and cost savings initiatives have improved operational efficiency, contributing to top-line growth.

Legal and General Capital and Other

Expected Growth: 6.5%

Legal and General Capital and Other's 6.5% growth is driven by increasing demand for alternative asset management, expansion of its direct investment portfolio, and growth in its UK mortality and longevity business. Additionally, the segment benefits from a strong balance sheet, allowing for strategic investments and acquisitions, further fueling growth.

Retail Retirement

Expected Growth: 7.8%

The 7.8% growth in Retail Retirement from Legal & General Group Plc is driven by increasing demand for retirement products, rising pension freedoms, and a growing need for income drawdown solutions. Additionally, the company's diversified distribution channels, including direct-to-consumer and intermediary partnerships, have contributed to the segment's growth.

Legal & General Investment Management

Expected Growth: 8.2%

Legal & General Investment Management's 8.2% growth is driven by increasing demand for sustainable investments, expansion into new markets, and strategic partnerships. The company's expertise in ESG and fixed income, combined with its strong brand reputation and diversified client base, have contributed to its growth momentum.

7. Detailed Products

Life Insurance

Provides financial protection to individuals and families in the event of death or terminal illness.

Pensions and Retirement

Offers a range of pension and retirement products to help individuals save for their future.

Investments

Provides a range of investment products, including ISAs, bonds, and funds, to help individuals grow their wealth.

General Insurance

Offers a range of general insurance products, including home, motor, and travel insurance, to protect individuals and their assets.

Annuities

Provides a guaranteed income for life in exchange for a lump sum payment.

Mortgages

Offers a range of mortgage products to help individuals purchase or remortgage a property.

Savings

Provides a range of savings products, including fixed rate bonds and easy access accounts, to help individuals save and grow their money.

8. Legal & General Group Plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Legal & General Group Plc is medium due to the presence of alternative investment products and services offered by other financial institutions.

Bargaining Power Of Customers

The bargaining power of customers for Legal & General Group Plc is low due to the company's strong brand reputation and diversified product offerings.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Legal & General Group Plc is medium due to the company's dependence on a few large suppliers for certain services.

Threat Of New Entrants

The threat of new entrants for Legal & General Group Plc is low due to the high barriers to entry in the financial services industry.

Intensity Of Rivalry

The intensity of rivalry for Legal & General Group Plc is high due to the highly competitive nature of the financial services industry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 86.61%
Debt Cost 3.95%
Equity Weight 13.39%
Equity Cost 10.68%
WACC 4.85%
Leverage 646.89%

11. Quality Control: Legal & General Group Plc passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Vontobel

A-Score: 6.5/10

Value: 6.8

Growth: 4.1

Quality: 6.4

Yield: 7.5

Momentum: 6.0

Volatility: 8.3

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Legal & General

A-Score: 6.2/10

Value: 4.8

Growth: 2.3

Quality: 5.6

Yield: 10.0

Momentum: 5.5

Volatility: 9.0

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Man

A-Score: 5.8/10

Value: 5.0

Growth: 5.8

Quality: 7.2

Yield: 8.1

Momentum: 2.0

Volatility: 6.7

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Tikehau

A-Score: 5.7/10

Value: 4.3

Growth: 5.4

Quality: 7.1

Yield: 6.2

Momentum: 2.0

Volatility: 9.0

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Peugeot

A-Score: 5.6/10

Value: 2.7

Growth: 6.2

Quality: 6.8

Yield: 5.6

Momentum: 5.0

Volatility: 7.3

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Caledonia Investments

A-Score: 5.4/10

Value: 2.5

Growth: 2.4

Quality: 7.2

Yield: 4.4

Momentum: 7.0

Volatility: 9.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.49$

Current Price

2.49$

Potential

-0.00%

Expected Cash-Flows