View more on these topics

L&G hopes restructure will save £80m

Legal & General is set to incur £40m in restructuring costs in a bid to deliver £80m of cost savings this year. 

In its half-year results, published last week, the provider says it is pursuing a cost-cutting strategy through the closure of non-core businesses as well as job losses and a review of its UK and US locations. L&G is also closing its flagship headquarters in Kingswood, Surrey, which employs 1,700 people on a 50-acre site.

Overall, L&G has posted a £672m profit for the first half of the year – up 6 per cent from £636m at the same time last year. Its mortgage arm processed around £20bn of business in H1 2015 – up from £18bn in H1 2014.

The company is looking to equity release as a growth area. It wrote £37m in lifetime mortgages in H1 and is targeting £200m for the year.

L&G group chief executive Nigel Wilson says: “L&G continues to deliver strong organic growth in the UK and the US from both our developing and established businesses. In addition, we are disposing of, or closing, non-core businesses and reducing costs in real and nominal terms.

“The actions that we are taking allow us to focus on our chosen markets, continue to deliver low prices and better value for our increasing customer base, and deliver attractive returns for our shareholders.”

Recommended

HM-Treasury-700.png

Treasury and FCA to probe financial advice

The Treasury and the FCA are to carry out a major review of financial advice to establish how the market can function better for consumers. The review will be supported by an advisory panel led by Scottish Widows chair Nick Prettejohn and will look at efforts to bridge the advice gap and the obstacles preventing […]

Cook-Rodney.Just-Retirement.2013

Equity release providers Just Retirement and Partnership to merge

Just Retirement and Partnership, the two insurers whose share prices were savaged by Chancellor George Osborne’s radical annuities overhaul, are to merge. The deal, announced this morning on the London Stock Exchange, is expected to result in Just Retirement shareholders owning roughly 60 per cent of the combined business, with Partnership shareholders controlling the remaining […]

Construction-Energy-Oil-Fuel-700x450.jpg

Deflation predicted to return as oil prices fall

Falling oil prices will likely lead to another bout of deflation and means the Monetary Policy Committee should “take its time over raising interest rates”, says Capital Economics. The price of oil is at a six-month low, with a barrel now costing under $50. CPI inflation was 0 per cent in July, although core inflation […]

Newsletter

News and expert analysis straight to your inbox

Sign up