FTSE 100 life insurer Legal & General Group PLC (LSE:LGEN) is said to be mulling the sale of its housebuilding subsidiary Cala Group.
Cala, which comprises Cala Homes and sister company Legal & General Homes, could fetch £1 billion for L&G, according to a Sky News report.
L&G’s incoming chief executive António Simões called Cala "a very strong business" during a February earnings call, when shareholders questioned the future ownership of the business.
Cala, which describes itself as a developer of "desirable new homes and sustainable communities" across the south of England, the Midlands and Scotland, generated revenues of £1.32 billion and £258 million in gross profit in 2022, per the latest accounts filed with Companies House.
This was from completed sales of 2,970 new homes, down from 3,231 in 2021.
A spokesperson from Legal & General told Proactive: “Legal & General regularly review and conduct conversations about the future of all our various investments and subsidiary businesses as we seek to maximise value for our shareholders”