Legal & General Group Plc (LON:LGEN) has announced its half year results for 2023.
H1 2023 Results: £0.95bn of operating profit and capital generation, stock of deferred profits up to £13.8bn, DPS up 5% to 5.71p and SII ratio of 230%
Resilient financial performance1
· Operating profit of £941m (H1 2022: £958m)
· Solvency II coverage ratio2 of 230%, with surplus of £9.2bn (H1 2022: 212%)
· Solvency II operational surplus generation of £947m (H1 2022: £946m)
· Profit after tax3 of £316m (H1 2022: £575m)
· Interim dividend of 5.71p, up 5% (H1 2022: 5.44p)
£947m capital generation with significant dividend headroom4
· We are on track to achieve our five-year (2020-2024) ambitions. To date:
‒ Capital generation of £5.9bn (£8.0-9.0bn by 2024)
‒ Dividends of £3.6bn (£5.6-5.9bn by 2024)
‒ Net surplus generation over dividends of £0.6bn5
· The Board’s intention is to continue to grow the dividend at 5% per annum to FY246
Stock of deferred profits up to £13.8bn as new business outpaces backbook release7
· New business deferred profits of £0.6bn
‒ LGRI premiums of £5.0bn (H1 2022: £4.4bn) generating deferred profit of £0.4bn8
‒ In H2, LGRI has already written a further £1.8bn UK and $1.0bn US PRT
“We remain on track to achieve our five-year ambitions and deliver attractive returns for our shareholders. In H1, we delivered £0.95bn of both IFRS operating profit and capital generation, together with a Solvency II ratio of 230% and a surplus of £9.2bn. The dividend is up by 5%. LGRI and LGC performed strongly, LGIM results stabilised, and Retail’s performance – while impacted by competition in some areas – was bolstered by growing annuity sales and progress in US protection. We wrote £4.9bn of UK PRT, deploying just £106m of capital, underlining the benefits of our synergistic business model. I’d like to thank my colleagues for their contribution and ongoing commitment to inclusive capitalism, serving our shareholders, customers and wider society.”
Sir Nigel Wilson, Group Chief Executive, Legal & General Group
