Speculation that investment arms may be hived off
Insurance companies may cease managing investments and hive off that side of their businesses, the FT reports.
It names Lloyds banking group and Legal & General as two considering the change, pointing out that until recently many of these institutions insisted that it was a core business.
The FT says: “Tim Breedon, L&G's chief executive, has always said that LGIM was a core business.
“But he has also told analysts that the value of LGIM was not fully recognised in L&G's share price.
“A big cash offer might be enough to turn the board's head, say those familiar with the group.”
