11th Dec 2015 07:30
LONDON (Alliance News) - Legal & General Group PLC on Friday gave its backing to long termism by setting out plans to stop reporting on a quarterly basis.
The life insurer and investment manager said its preference is to make "timely and frequent" updates, with the intent of improving the way it communicates with investors and other stakeholders.
The move comes after the group's investment management arm wrote to every company in the FTSE 350 in support of regulatory changes that have removed the obligation to report finances on a quarterly basis.
"The future success of the UK economy is dependent on companies and shareholders making the correct long-term business decisions. Legal & General believes making this change will help management and the board make the right long-term decisions in the interests of all our stakeholders," Chief Executive Nigel Wilson said in a statement.
"Our business cycle is long-term, with many of our investment and business decisions playing out over years and sometimes decades, rather than quarters. As such, ending quarterly reporting will allow us to focus on communicating what is relevant to the value creation in Legal & General's businesses," Wilson said.
Legal & General said it will continue to provide preliminary annual and interim results, as well as "qualitative" updates covering market and company developments.
By Samuel Agini; [email protected]; @samuelagini
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