London, UK – Legal & General Group (OTCPK:LGGNY) (OTCPK:LGGNF) (LGEN on LSE) is currently yielding close to 8.5%. The company has announced plans to increase its dividend by 5% in 2023 and 2024. Investors are questioning the sustainability of this trend and whether they can expect capital appreciation alongside the generous dividend.

Just three months ago, a comparison was made between Enterprise Products and Legal & General to determine the superior yield stock to choose. With Legal & General’s recent 2023 results out, it’s time for an update on the company’s performance.

Legal & General is a company with a rich history and currently operates in four divisions/segments. These include L&G Retirement Institutional focused on Pension Risk Transfers, Retail offering individual annuities and life insurance policies, L&G Investment Management as the UK’s largest asset manager, and L&G Capital involved in alternative investing such as real estate and renewables.

When it comes to the company’s 2023 results, the focus is on traditional metrics like operating profit and EPS, as well as Solvency II measurements for regulatory purposes. The ability to pay dividends is a crucial aspect, with a surplus generation and new business strain determining sustainability.

In terms of L&G’s insurance business, which is the core of the company, there is a strong focus on the L&G Retirement Institutional segment. This segment is crucial for current profits and future success, with a detailed look at its 2023 results revealing the intricate nature of group annuity contracts and expected future profits.

The article delves into valuations, discussing the company’s intrinsic values and how they compare with the current stock price. While Legal & General seems attractively priced, uncertainties around the UK stock market and macroeconomic factors pose potential challenges and opportunities for investors.

In conclusion, Legal & General’s performance is dissected, with insights into the company’s management changes, potential opportunities for growth in its asset management and alternative investing arms, and practical considerations for US investors looking to engage with the company. The article provides a comprehensive overview of Legal & General’s current standing and future prospects in the market.