L&G is committed to the City, says new boss

LEGAL & GENERAL today committed itself to the City and said it would aim to raise dividend payouts by 5% a year — a boon to large investors such as pension funds.

- Simon English

New CEO António Simões, pictured, pledged to take a “fresh perspective” on the business in a strategy update due in June.

But the core business — corporate pensions and UK annuities — is unlikely to change much, stability the City will welcome as big firms disappear from the stock market or threaten to move their listings overseas.

Operating profits were flat at £1.7 billion, a bit lower than analysts had been hoping for. The shares slipped 2.5% to 239p today, leaving the business valued at £14 billion.