Life Insurance  

L&G reshapes businesses in wake of CEO departure

Legal and General Assurance Society is making changes in relation to its insurance, corporate and savings divisions, introducing a new structure aimed at increasing the scalability of its long-term businesses, reducing costs and delivering enhanced value for shareholders and customers.

Following the announcement in September that executive director and chief executive John Pollock will retire and step down from the group’s board at the next AGM on 21 May 2015, the firm decided there will be no direct replacement for him.

He will work with the managing directors to ensure a successful transition to the new business structure, with a strong focus on digital.

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The new business structure is as follows:

As part of the new business structure, group protection will move from corporate and join the insurance business to form a “centre of excellence”, with Duncan Finch, current managing director of insurance, being put in charge.

He will report to group chief executive Nigel Wilson from the start of the new year.

Within corporate, the £10bn assets under management workplace defined contribution platform will move to Legal and General Investment Management, but will continue to be headed by Jim Islam, who will join LGIM chief executive Mark Zinkula’s senior management team.

Savings will be divided between mature and digital. Jackie Noakes, previously chief operating officer for LGAS and group IT director, will become managing director of the mature savings division, consisting of insured savings and with-profit businesses.

Digital savings will be managed by Mike Bury, who will continue to be responsible for Cofunds, IPS, Suffolk Life, and the new digital direct customer proposition. Both will continue to report to Mr Pollock until the end of March, before switching to Mr Wilson.

Finally, in terms of group finance, Chris Knight, LGAS chief financial officer, will now report to group chief financial officer Mark Gregory.

Mr Wilson stated that the changes will deliver scalability, low cost products to customers, and value to shareholders.

“We remain focused on our clear and differentiated strategy of strong cash generation, organic growth and selective bolt on acquisitions,” he added.