Legal & General
Encyclopedia
Legal & General Group Plc , commonly known as Legal & General, is a multinational
financial services company headquartered in London, United Kingdom. Its products include life insurance
, general insurance, pension
s and investments. It has operations in the United Kingdom, Egypt, France, Germany, the Gulf
, India, the Netherlands and the United States. As at 31 December 2010 it had total funds under management of £354 billion.
It listed on the London Stock Exchange
and is a constituent of the FTSE 100 Index
.
The group expanded in the UK and soon began to acquire overseas life assurance companies, purchasing a pensions business from the Metropolitan Life Assurance Company of New York in the 1930s.
In 1956 Life business was set up in Australia.
The society became a wholly owned division of Legal & General Group plc in the 1970s.
During the 1980s Legal & General bought Government Employee Life Insurance in the USA and the Dutch branch of Unlike Assurance Group and set up business in France.
The previous Legal & General logo incorporates the image of the Temple Bar
(which is still used in the logo of the company's social and athletic committee), and the founding date. The umbrella logo used today was introduced by former Chief Press Officer Gordon Macdonald in June 1984.
During the early 1990s, Legal and General had been sponsoring the Regional Weather Forecasts for the ITV network
.
In 1999, Legal & General announced plans to merge its business with that of the National Westminster Bank
to form the first 'bancassurance' company in the UK. However, poor market reception to the deal saw the Royal Bank of Scotland
bid for the National Westminster, and the merger deal collapsed.
In 2003, Northern Rock
bought the Legal & General Bank and Legal & General Mortgage Services.
In 2005 Legal & General sold its stake in Gresham Insurance, its joint venture with Barclays Bank, to Barclays.
In 2008 Legal & General bought Suffolk Life
, a provider of Self Invested Pension products.
In 2008, Legal & General outsourced its IT development areas to TCS (Tata Consultancy Services
).
In 2009, Legal & General formed a joint venture with two Indian public sector banks, Bank of Baroda and Andhra Bank to launch IndiaFirst Life Insurance Company
in India.
In October 2010, Legal & General outsourced its remaining IT areas to (IBM
).
In March 2011, workers at Legal & General allege overcharging by an IT supplier.
s.
LGFL Franchisees trade under one of four different brand names depending on the area in which they operate. Each brand name has been trading for at least 17 years and in some cases over 150. The brands are:
Since 2005 LGFL has operated under the name Xperience further separating the branding of operation from the main Legal & General brand.
Nigel Wilson became CFO in September 2009.
Multinational corporation
A multi national corporation or enterprise , is a corporation or an enterprise that manages production or delivers services in more than one country. It can also be referred to as an international corporation...
financial services company headquartered in London, United Kingdom. Its products include life insurance
Life insurance
Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger...
, general insurance, pension
Pension
In general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.The terms retirement...
s and investments. It has operations in the United Kingdom, Egypt, France, Germany, the Gulf
Arab states of the Persian Gulf
"Arab states of the Persian Gulf" or "Arab Persian Gulf states" or "Persian Gulf Arab states" or "Arabic Persian Gulf states" or "Arab States of The Gulf", are terms that refer to the six Arab states of Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Bahrain and Oman, bordering the Persian Gulf....
, India, the Netherlands and the United States. As at 31 December 2010 it had total funds under management of £354 billion.
It listed on the London Stock Exchange
London Stock Exchange
The London Stock Exchange is a stock exchange located in the City of London within the United Kingdom. , the Exchange had a market capitalisation of US$3.7495 trillion, making it the fourth-largest stock exchange in the world by this measurement...
and is a constituent of the FTSE 100 Index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
.
History
Legal & General was formed by Sergeant John Adams and five other lawyers in June 1836 in a Chancery Lane coffee shop. Originally called the New Law Life Assurance Society, the society was restricted to those in the legal profession. The name was changed to Legal & General Life Assurance Society to reflect that policies were available to the general public but with share ownership restricted to those in the legal profession.The group expanded in the UK and soon began to acquire overseas life assurance companies, purchasing a pensions business from the Metropolitan Life Assurance Company of New York in the 1930s.
In 1956 Life business was set up in Australia.
The society became a wholly owned division of Legal & General Group plc in the 1970s.
During the 1980s Legal & General bought Government Employee Life Insurance in the USA and the Dutch branch of Unlike Assurance Group and set up business in France.
Temple Bar, London
Temple Bar is the barrier marking the westernmost extent of the City of London on the road to Westminster, where Fleet Street becomes the Strand...
(which is still used in the logo of the company's social and athletic committee), and the founding date. The umbrella logo used today was introduced by former Chief Press Officer Gordon Macdonald in June 1984.
During the early 1990s, Legal and General had been sponsoring the Regional Weather Forecasts for the ITV network
ITV
ITV is the major commercial public service TV network in the United Kingdom. Launched in 1955 under the auspices of the Independent Television Authority to provide competition to the BBC, it is also the oldest commercial network in the UK...
.
In 1999, Legal & General announced plans to merge its business with that of the National Westminster Bank
National Westminster Bank
National Westminster Bank Plc, commonly known as NatWest, is the largest retail and commercial bank in the United Kingdom and has been part of The Royal Bank of Scotland Group Plc since 2000. The Royal Bank of Scotland Group is ranked as the second largest bank in the world by assets...
to form the first 'bancassurance' company in the UK. However, poor market reception to the deal saw the Royal Bank of Scotland
Royal Bank of Scotland
The Royal Bank of Scotland Group is a British banking and insurance holding company in which the UK Government holds an 84% stake. This stake is held and managed through UK Financial Investments Limited, whose voting rights are limited to 75% in order for the bank to retain its listing on the...
bid for the National Westminster, and the merger deal collapsed.
In 2003, Northern Rock
Northern Rock
Northern Rock plc is a British bank, best known for becoming the first bank in 150 years to suffer a bank run after having had to approach the Bank of England for a loan facility, to replace money market funding, during the credit crisis in 2007. Having failed to find a commercial buyer for...
bought the Legal & General Bank and Legal & General Mortgage Services.
In 2005 Legal & General sold its stake in Gresham Insurance, its joint venture with Barclays Bank, to Barclays.
In 2008 Legal & General bought Suffolk Life
Suffolk Life
Suffolk Life, based in Ipswich, Suffolk, is a British pensions administrator. It mainly provides the administration of self-invested personal pensions , and personal pensions for private funds and self-invested funds of third party providers...
, a provider of Self Invested Pension products.
In 2008, Legal & General outsourced its IT development areas to TCS (Tata Consultancy Services
Tata Consultancy Services
Tata Consultancy Services Limited is a global IT services, business solutions and outsourcing company headquartered in Mumbai, India. It is the largest provider of information technology in Asia and second largest provider of business process outsourcing services in India...
).
In 2009, Legal & General formed a joint venture with two Indian public sector banks, Bank of Baroda and Andhra Bank to launch IndiaFirst Life Insurance Company
IndiaFirst Life Insurance Company
IndiaFirst Life Insurance Company is a life insurance company in India. It is a joint venture between Bank of Baroda, Andhra Bank and Legal and General . IndiaFirst Life has made more than Rs. 200 crores in turnover. IndiaFirst Life insurance company is headquartered in Mumbai...
in India.
In October 2010, Legal & General outsourced its remaining IT areas to (IBM
IBM
International Business Machines Corporation or IBM is an American multinational technology and consulting corporation headquartered in Armonk, New York, United States. IBM manufactures and sells computer hardware and software, and it offers infrastructure, hosting and consulting services in areas...
).
In March 2011, workers at Legal & General allege overcharging by an IT supplier.
Operations
Today the company continues to offer a wide range of products and, in addition to its direct sales service and brokerage agreements with numerous tied agents and independent financial adviserIndependent Financial Adviser
Independent Financial Advisers or IFAs are professionals who offer independent advice on financial matters to their clients and recommend suitable financial products from the whole of the market...
s.
Estate Agency – Xperience
Although not often promoted by the company, Legal & General also owns one of the largest estate agency/lettings agency franchise businesses in the UK through its LGFL (Legal & General Franchising Ltd) subsidiary. The businesses are not marketed under the Legal & General brand, but instead operate under a number of regional brands, operating over 110 branches nationwide.LGFL Franchisees trade under one of four different brand names depending on the area in which they operate. Each brand name has been trading for at least 17 years and in some cases over 150. The brands are:
- CJ Hole
- Ellis & Co
- Parkers
- Whitegates
- Michael Evison
Since 2005 LGFL has operated under the name Xperience further separating the branding of operation from the main Legal & General brand.
Senior management
Tim Breedon became CEO on 1 January 2006. For this role he is paid an annual salary of £770,000.Nigel Wilson became CFO in September 2009.