Legal & General Group PLC (LSE:LGEN) announced strong earnings growth for 2021 as it benefitted from the post-pandemic economic rebound and easing of COVID-19 restrictions.
The asset management group reported operating profit of £2.26bn for the year to 31 December 2021, a rise of 11% on 2020 and in line with the company’s guidance for double-digit growth announced with the interim results.
“This marks a return to our long-term rate of growth, having been resilient through the pandemic,” L&G said in a statement.
Post-tax profits surged 28% to £2.05bn, with earnings per share (EPS) coming in at 34p, a rise of 72% on the previous year and 19% higher than in pre-pandemic 2019.
Operating profit at the retirement business LGRI fell 6% to £1.15bn last year, while the investment management division LGIM delivered operating profit growth of 4% to £422mln with assets under management increasing by 11% to £1.42bn.
The Solvency II coverage ratio rose to 187% from 175%. The company estimated its coverage ratio was 198% on 7 March 2022.
The group said it sees opportunities from the UK government's levelling up plans to create new assets across housing, physical and digital infrastructure, urban regeneration, SME finance and venture capital.
“The expected reform of Solvency II, the roll-out of the UK government's levelling up programme, and our growing international businesses underscore our confidence in our ability to continue delivering on a broad range of profitable growth opportunities," said chief executive Sir Nigel Wilson.
L&G proposed a final dividend of 13.27p, giving a full-year payout of 18.45p, up from 17.57p for 2020.