Legal & General finance chief Wilson steps up to the top job
THE MARKET yesterday backed Legal & General’s decision to promote from within and name its finance director as the chief executive.
Nigel Wilson, who joined the firm in September 2009, will replace Tim Breedon at the end of June. Until then he will serve as chief executive designate.
Shares in the 176-year-old insurer ticked up 1.9 per cent to 113.4p yesterday and won the backing of analysts.
“We think that this is a great appointment given his impressive performance since becoming finance director when he identified cash as being a key driver for valuation of L&G which has now been copied across the sector. He is also known as much for his desire to simplify the business as his tight financial control,” said Barrie Cornes at Panmure Gordon.
Breedon joined the board of L&G in 2002, having started at the company in 1987 and worked predominantly as an index fund specialist – working his way up through management before taking the top spot in 2006, where he steered the firm through the financial crisis. He will stay on until the end of the year, to help lobby for changes to the European Union’s controversial Solvency II capital regime for insurers, and will collect shares worth £3m should the company hit all performance targets.
Wadham Downing, L&G’s group financial controller, becomes interim chief financial officer pending a permanent appointment, the insurer added.
L&G saw operating profit rise five per cent to £1.06bn last year. Sales gained seven per cent to £1.9bn, aided by a 34 per cent earnings rise at its asset management arm.