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The Markets
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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
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Insurance

L&G grows profits in line with expectations as retirement income grows

The insurer is on track to generate £8bn to £9bn of cash and capital between 2020 to 2024 after achieving 22% growth in cash generation in the first half of £4.3bn

Legal & General Group PLC (LSE:LGEN) generated £1.36bn of operating profit in the first half, up 8% on the equivalent period of 2021 and in line with expectations.

The FTSE 100-listed insurance company said its retail insurance business generated the most growth, with profits 14% higher at £332mln.

And its Retirement Institutional unit remained the most profitable segment, underpinned by its annuity portfolio - posting 7% growth in profits to £560mln.

The insurer said it wrote £4.45bn of transactions under global pension risk transfer at “attractive” business margins of 8.7% under the new Solvency II regime.

“We have delivered for our institutional clients and retail customers, while generating good volumes and margins in a buoyant PRT market and continuing to scale LGC at pace—both in the UK and now also in the US —originating assets for our own business and for third parties, whilst also delivering a positive outcome for the economies where we invest,” said group executive Nigel Wilson.

All its segments achieved growth except for Legal & General Investment Management, where profits dipped 2% to £200mln.

L&G delivered 8% growth in its earnings per share for the period of 19.28p compared to 17.78p in the first half of last year.

It said it remains on track to generate £8bn to £9bn of cash and capital from 2020 to 2024, achieving 22% growth in cash generation in the first half of £4.3bn.

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