Nigel Wilson, Group Chief Executive at Legal & General Group (LON:LGEN) joins us on ‘Meet the CEO’ segment hosted by Panmure Gordon & Co.
Nigel Wilson was appointed group chief executive in 2012 having joined as group chief financial officer in 2009. A PhD from the Massachusetts Institute of Technology where he was a Kennedy Scholar and a recipient of the Alfred P Sloan research scholarship, Nigel believes in deliver a socially inclusive, digitally and physically growing economy. He also worked at the National Bureau of Economic Research (NBER).
A must watch segment as Wilson details his take on numerous issues ranging from pensions to prospects for Legal & General and UK economy after Brexit to negative rates environment. This segment is hosted by Panmure Gordon’s David Buik and Simon French.
On Pensions
- Nigel says his company aims to make pensions as attractive as housing. The main problem is that industry has not educated people enough regarding pensions and there is a need to address this problem of communication.
Where is UK heading post Brexit?
- Nigel is optimistic about the future of the UK economy outside EU. In his opinion, UK has more disposable income in relative terms and stands to gain at a time when the world is on the cusp of a technological revolution. He adds that, “the idea is to monetize, take start ups and build them up into stalwarts…the way they do in US”.
Dividend policy
- In today’s negative-interest-rate world, a 6% dividend yield offered by Legal & General is unusual. A higher than average yield is usually an indication that the market doesn’t believe the payout is sustainable. Well after hearing Wilson’s take on this, you viewers would feel compelled to have the stock which is offering a deal that is hard to refuse in the first place.
On EC, need for reforms
- Wilson says most EU members feel there is a need for reforms. Slowness of decision making across Europe has dampened entrepreneurial spirits, he adds.
On Legal & General’s Insurance business
- “It is in the process of transformation from analog commission heavy business to digital business. It is a difficult transformation… particularly in insurance where there is a lot of legacy IT”
Other key quotes
- Need for a narrative that force to deliver long-term returns, less focus on quarterly reporting
- Need of the hour - a socially inclusive, digitally and physically growing economy
- UK would not grow unless major cities except London grow. UK is over dependent on London and South East