Legal & General was prepared for Brexit

Ryan Bembridge

June 28, 2016

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Legal & General has reassured its shareholders that it had prepared for a vote to leave the European Union by derisking its asset portfolio.

L&G said it thought there was a 50-50 probability of a vote to leave and planned accordingly.

It said: “We undertook a number of derisking actions in respect of our asset portfolios, including the traded equities held within our shareholder funds, before the referendum to mitigate our balance sheet against the downside risk of a leave vote.”

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At the same time L&G confirmed the appointment of John Kingman as group chairman from the Treasury, with the move being approved by the Prudential Regulation Authority and the Financial Conduct Authority.

Kingman was heavily involved in bailing out Lloyds Banking Group and the Bank of Scotland at the peak of the financial crisis.

He said: “Legal & General is a great company. I am delighted to serve as its next chairman, helping to generate value as part of a strong team and applying our collective skills on behalf of our shareholders and customers.”

L&G’s interim chairman Rudy Markham, added: “John’s grasp of complex financial markets was a hallmark of the UK government’s successful handling of the 2008-9 financial crisis.

“This, plus his commitment to growth in the UK economy, will stand him in good stead at Legal & General as the UK navigates Brexit and as we continue to support economic growth which benefits our 10 million customers.”