Legal & General Group PLC (LSE:LGEN) reported strong growth in profit in 2022, raised its dividend by 5% and said it remained on track to deliver its five-year strategic ambitions.
"We have delivered another strong result in 2022, ahead of market expectations,” commented Sir Nigel Wilson, group chief executive.
The FTSE 100-listed insurer posted operating profit of £2.523bn in the 12 months to 31 December 2022, up 12% from £2.262bn in 2021, while earnings per share advanced 12% to 38.33p from 34.19p previously and the total dividend was increased by 5% to 19.37p. Analysts had forecast operating profit of £2.451bn.
Return on equity improved slightly to 20.7% (2021: 20.5%) and the solvency II coverage ratio soared to 236% from 187% in 2021. L&G estimated that as at 3 March 2023, the coverage ratio had improved further to 240%.
Global pension risk transfer new business premiums totalled £9.5bn (2021: £7.2bn), of which 23% was international, the company said.
By division, LGRI operating profit increased by 9% to £1.257bn, underpinned by the growing scale of backbook earnings and the consistent performance of its annuity portfolio, while at LGC operating profit increased by 10% to £509mln, driven by the strong performance in its alternative asset portfolio.
LGIM delivered lower operating profit of £340mln (2021: £422mln) primarily due to the impact of market movements on assets under management, which decreased by £225bn to £1,196bn since the start of the year.
L&G said it had made a good start to the new financial year and remains on target to meet its five-year strategic ambitions laid out in 2020.
"We are pleased with the further progress we have made in 2022 and are confident in our ability to deliver further profitable growth going forwards," the firm stated.