In the beginning...
Legal & General was conceived in the minds of six lawyers - five barristers and a solicitor - to found The Legal & General Life Assurance Society, the forerunner of today's
Legal & General Group. The lawyers, like other members of their profession, were in the habit of meeting in the coffee houses of Fleet Street. Their frequent discussions on the possibility or advisability of forming an assurance society led them eventually to proceed with the formation of a life office in June 1836. It was a society with unlimited liability and an initial authorised capital of £1 million in shares of £50 each, but with only £2 paid, making a total investment of just £40,000. On this the Society survived and slowly developed, and it was well over a century later before there was any enhancement of the capital structure. Although membership at the time was restricted to the legal profession (a restriction that lasted until 1929), all 20,000 of the shares first issued were allotted within 18 months.
Six founding directors...
The six men were lawyers 'of exceptional ability and renown', according to one account. They were Sergeant John Adams, chairman of Middlesex magistrates and later an assistant judge, who became the Society's first chairman; George Leake Baker, a solicitor; J.H.R. Chichester, W.C.L. Keene and Kenyon S Parker, all barristers; and Basil Montagu, QC who was also a man of letters. These men laid the foundations of Legal & General with care and skill and served as directors for many years - in the case of Chichester, for 47.
Open for business...
The Society opened its doors for business on 19 September 1836, operating from the temporary premises taken on lease at 10 Chancery Lane (later demolished to become part of the site of the present day Public Record Office). Meanwhile some land nearby had been chosen for the building of a permanent office at 10-12 Fleet Street. This location, for the next 100 years or so, was to become famous as the site of the Society's chief administrative headquarters.
The first life policy was issued on 14 October 1836.
The founders of Legal & General, however, were clearly men of probity and diligence; their care and skill laid the foundations of the extensive worldwide business we have today. Their concept of service to the public undoubtedly contributed to the development of the insurance industry's great traditions.
Our first chairman...
The first Chairman of Legal & General was Sergeant John Adams, a renowned lawyer of his day. Born in 1786, he was called to the Bar at the age of 26 and became a sergeant-at-law 12 years later. In 1836, the year when Legal & General was founded, he was also appointed chairman of Middlesex magistrates. He subsequently became Britain's first paid assistant judge.
During 20 years on the bench (he was chairman of
Legal & General for a similar period of time) Sergeant Adams tried 31,400 prisoners who were brought before him. Although reportedly eccentric in manner, he was 'humane and merciful at heart and often bestowed acts of private benevolence on his prisoners after he had sentenced them.' He was particularly concerned about juvenile offenders, who in the nineteenth century were in no way distinguished from adult offenders and were often sentenced to harsh terms of imprisonment. He pressed repeatedly for changes in the law relating to delinquent young people, and it was as a result of his efforts that the Parkhurst Act was changed to allow convicted young offenders to be sent to reformatory schools instead of prison. Sergeant Adams died in 1856.
Our aims...
It has been said that insurance can claim to be the first real financial service in that it was the first to bring the benefits of financial planning and risk-sharing within the reach of everyone. In the case of Legal & General this has certainly been a consistent aim. We have sought over many years to progressively extend our services and product range in various areas of insurance - often introducing new ideas and concepts in the process. For many years, too, we have played an increasingly strong role in underpinning economic, industrial and scientific progress; this is typified today, not only by Legal & General insuring massive new projects such as satellites in space, but also by backing financially the effective transfer of infant technologies to larger-scale production and commercial use.
As well as running a business, we believe we have social responsibilities - that we should function as a profitable enterprise and also play a part in the cultural and social life of the community. It is for this reason that we have developed within Legal & General, again over a period of years, a conscious and sustained programme of sponsoring and other contributory activities.
