Legal & General Group PLC (LSE:LGEN)’s shares fell by 3% in early trading as new CEO António Simões' overhaul of the insurer met with a lukewarm response.
Simões, who joined the company in January from Santander, outlined plans to sell the housebuilder Cala, merge divisions, and initiate a £200 million share buyback, aiming for a "simpler, better-connected L&G".
The reorganisation includes combining Legal & General Investment Management with the group's investment unit and selling non-core assets.
The FTSE 100 company also plans to aggressively pursue corporate pension deals, targeting up to £65 billion in the UK by 2028, after completing £13.7 billion globally last year.
Simões emphasised the need to adapt to changing investment needs and shift towards higher returns on capital. The company aims for compound annual growth in core operating earnings per share between 6% and 9% until 2027.
Early reaction was muted with the stock off 7.41p at 235.69p.
Panmure Gordon in a short assessment of the announcement said Simões had probably done 'just enough', but it also noted there may be some disappointment around the dividend growth.