Since the FSA admitted its blunder over the investigation into Legal & General (L&G), the insurer's fortunes have taken an upturn. The share price hit a 52-week high on 7 February at 120p, also due to the announcement that it has sold its 90% stake in Gresham Insurance to Barclays Bank. The price it received was a healthy £85m which the insurer said would be redeployed elsewhere within the group.
It looks likely the cash will be used to boost its general insurance lines, in particular its healthcare business after the recent appointment of Chris Rolland to head the operation. L&G says it will also invest further in its life operations but maybe general is a little safer in the present climate.