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.”