Legal & General sees first-half profit tumble

Legal & General sees first-half profit tumble | Insurance Business America

Insurance News

Legal & General sees first-half profit tumble

Chief executive talks progress in strategy delivery

Insurance News

By
Terry Gangcuangco

Legal & General Group has released its earnings report for the first half of 2024, revealing a lower profit after tax compared to the corresponding result in 2023.

Here’s how the UK-headquartered financial services group fared in the six months ended June 30:

Metric

H1 2024

H1 2023

Core operating profit

£849 million

£844 million

Operating profit

£920 million

£924 million

Profit after tax attributable to equity holders

£223 million

£377 million

Broken down, L&G’s three divisions contributed the following: £560 million in operating profit from institutional retirement; £214 million from asset management; and £268 million, retail.

António Simões (pictured), who was appointed group chief executive on January 1, had this to say about the half-year financials: “These results reflect the ongoing strength of our business, with core operating profit slightly ahead of the prior year and a solvency coverage ratio of 223%. We continue to expect 2024 core operating profit to grow by mid-single digits year-on-year.

“At our Capital Markets event in June, we set out our strategy to deliver L&G’s next phase of sustainable growth and enhanced returns, through focused capital allocation and rigor in execution. We are pleased to announce a 5% increase in interim dividends per share, and progress in undertaking a £200 million share buyback, consistent with our new capital return framework.”

The CEO added that they’re making “clear progress” on delivering against the new strategy, particularly in establishing a single asset manager.

“We have good momentum in private markets, launching a new fund to offer diversified exposure to defined contribution pension scheme members, and establishing our Affordable Housing fund, leveraging pension capital to build new homes,” Simões highlighted.

“These developments are important steps forward for L&G, reflecting our commitment to helping address the long-term investment needs of individuals and society, and create compelling opportunities for partners to invest alongside us to generate positive change.

“We are encouraged by the action being taken here in the UK to drive institutional capital towards productive assets, alongside progress on addressing structural barriers to investment, such as the planning system. Looking ahead, we are well positioned to continue to execute our strategy with pace and ambition, delivering growth and value for all our stakeholders.”

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