Legal & General Group PLC's (LSE:LGEN)'s recent results contained a couple of areas of potential concerns, suggests Canadian bank RBC.
Annuity margins and the continuing reliance on non-core asset portfolio (CIU) are the areas that worry RBC, with annuity volumes driven by price cuts and more entrants into what is becoming a crowded market.
Dividends meanwhile remain reliant on CIU income. L&G manages the non-core assets within the corporate investment unit (CIU) to maximise the potential sale value, but RBC notes there were impairments in the latest numbers, notably Salary Finance.
RBC has kept its price target unchanged at 245p, with a 'sector perform' rating.
Shares rose 0.4% to 228p on Thursday.