L&G and Admiral Defy the Gloom

The Week: Morningstar columnist Rodney Hobson says the two insurance companies are a decent bet in these troubled times, but Intu's prospects are worsening

Rodney Hobson 6 March, 2020 | 9:16AM

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In last week’s column I said it was hard to think of any company that would genuinely benefit from the coronavirus outbreak but I had overlooked Legal & General (LGEN), which would enjoy a drastic reduction in the amount in pensions it had to pay out if the virus took its course, with a disproportionate percentage of deaths among the elderly.

As it happens, L&G doesn’t need the intervention of apocalypse now. The steady rise in life expectancy has already abated, helping to boost 2019 pre-tax profits by 16% to £1.7 billion and leading to a 7% rise in the dividend.

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About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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