Is Legal & General Group Plc a better buy than Prudential plc, Royal Bank of Scotland Group plc and Old Mutual plc after trading update?

Does Legal & General Group Plc (LON:LGEN) (LGEN.L) have more investment appeal than Prudential plc (LON:PRU) (PRU.L), Royal Bank of Scotland Group plc (LON:RBS) (RBS.L) and Old Mutual plc (LON:OML) (OML.L)?

Legal & General
Legal & General

Legal & General Group Plc (LON:LGEN) (LGEN.L) has released an update on its trading performance. The company is seeing good momentum in all of its businesses in the year to date, and has experienced particularly strong growth in recent weeks. It is on track for a record year for earnings and profits.

For instance, its Retirement division has delivered total sales of £6.2 billion in 2017 to date. The business has shown strong momentum in the UK and US institutional pension risk transfer markets, as well as in individual annuities and lifetime mortgages.

Its Investment Management division has achieved total external net inflows of £38.1 billion to the end of October, with inflows well-diversified by product line and geography. Its Capital division has generated £256 million of gross proceeds from transactions with a gross value of £821 million to the end of October.

In Insurance, Legal & General has continued to benefit from its strong market shares in UK retail protection and US term assurances, with total gross written premiums to the end of October up 6% to £2.1 billion. General Insurance gross written premiums are up 13% to £305 million by the end of October.

In the last month the Legal & General share price has fallen 2.5%. That’s a worse performance than other financial services stocks such as Prudential plc (LON:PRU) (PRU.L), Royal Bank of Scotland Group plc (LON:RBS) (RBS.L) and Old Mutual plc (LON:OML) (OML.L). Prudential is down 0.5%, Old Mutual has risen 5% and RBS is down 1% during the same time period.

In my view, Legal & General has investment appeal for the long run. It seems to be making good progress with its strategy. With the stock trading on a dividend yield of 6% and a P/E of 10.5, I think it has income investing appeal as well as scope for improved share price performance.







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