James Ashton: L&G can edge out the Qatari capital flow
Given the strategy that is propelling it forward, it is striking to note that Legal & General’s shares this week reached a high not seen since NatWest tried to acquire the company 14 years ago.
In the intervening period, no one in Britain has made the bancassurance model work. In fact, the regulatory environment and looming capital requirements make it far less likely that banks and insurers will jump into bed together – with Lloyds and Scottish Widows constituting a curious outlier.
At L&G, boss Nigel Wilson has spent his first year at the helm intent on grabbing the initiative back from the banks, not ceding control. By hiking investment in infrastructure, including housebuilding, transport and education, he is hoping to match long-hold assets with better returns for pensioners over the long term.
That means edging out banks, which had been the main source of capital investment before they tripped up badly. In search of mountains of cash to repair crumbling roads and rail, it doesn’t look as though Britain needs to keep resorting to Qatari, Chinese or Norwegian money. Our homegrown sovereign wealth funds have been hiding out in the insurance sector all this time.
L&G has taken a far better turn than NatWest, which shortly after its takeover overtures failed was gobbled up by Royal Bank of Scotland.
Wellcome Image Awards: The most striking images from the world of science, including breast cancer cells under chemical attack and a photographer’s own kidney stone
Missing Malaysia Airlines plane: Terrorism explanation 'cannot be ruled out', says CIA
Bob Crow death: 'Admired by his members, feared by employers' - Tributes pour in for RMT union leader and 'working class hero' Bob Crow
Oscar Pistorius murder trial: Athlete repeatedly sick as court hears 'graphic details' of Reeva Steenkamp's post-mortem
How climate change helped Genghis Khan: Scientists believe a sudden period of warmer weather allowed the Mongols to invade with such success
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Poor 'live like animals' says Boris's privately educated sister after going on 'poverty safari'
Exclusive: Impact of immigrants on British workers ‘negligible’
Vince Cable: Teachers 'know absolutely nothing' about the world of work
Ukraine crisis: Russia pledges to 'retaliate against sanctions' as Ukrainian president says Crimea vote will not be recognised
The quiet diplomat: Catherine Ashton - recognised and admired in all the world’s troubled countries, yet ridiculed at home
- 2 Family forced to flee home after discovering 'terrifying' nest of spiders in bananas
- 3 First Kiss: Filmmaker gets 20 strangers to make out on YouTube with awkward results
iJobs Money & Business
£1000 per month: Inspiring Interns: The company works with Tier 1 FTSE 100 Ban...
£35000 - £60000 per annum + Bonus + Benefits: Pro-Recruitment Group: You must ...
£60000 - £80000 per annum + BONUS + BENEFITS: Harrington Starr: A top, City ba...
VOLUNTARY ONLY - EXPENSES REIMBURSED : Reach Volunteering: Fantastic opportuni...