Legal & General ceases quarterly reporting

UK insurer Legal & General is to cease publishing quarterly reports, as it looks to take advantage of rule changes affecting listed companies.

Instead, the company said its board had opted for a policy of “timely and frequent updates”.

L&G’s own investment management firm – Legal & General Investment Management – has itself written to the boards of all companies on the FTSE 350 – including its own parent – on the issue. In the letter it sent in June this year, it said that it supported the regulatory changes, which have removed mandatory requirements to disclose financial reporting on a quarterly basis. It added that “it was up to individual boards to make the appropriate decision on quarterly reporting, based upon their own business environment.”

Parent L&G now says it will provide “qualitative updates covering market and company developments” alongside its mandatory prelims and interims.

Nigel Wilson, group chief executive, said: “Legal & General believes in long termism. The future success of the UK economy is dependent on companies and shareholders making the correct long-term business decisions. Legal & General believes making this change will help management and the board make the right long-term decisions in the interests of all our stakeholders.”

“Our business cycle is long-term, with many of our investment and business decisions playing out over years and sometimes decades, rather than quarters. As such, ending quarterly reporting will allow us to focus on communicating what is relevant to the value creation in Legal & General’s businesses.”

Jonathan Boyd
Editorial Director of Open Door Media Publishing Ltd, and Editor of InvestmentEurope. Jonathan has over two decades of media experience in Japan, Australia, Canada and the UK. Over the past 17 years he has been based in London writing about funds and investments. From editing the newsletter of the Swedish Chamber of Commerce in Japan in the 1990s he now focuses on Nordic markets for InvestmentEurope. Jonathan was awarded Editor of the Year at the Professional Publishers Association (PPA) Independent Publisher Awards 2017. Shortlisted for the same in 2016, he was also shortlisted in 2017 and 2015 for the broader PPA Awards category Editor of the Year (Business Media).

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