Legal & General delivers strong growth in cash generation and 25% increase in interim dividend.
03 August 2011
- Operational cash generation up 19% to £498m (H1 2010: £417m)
Net cash generation up 14% to £427m (H1 2010: £373m)
- Interim dividend up 25% to 1.66p per share (H1 2010: 1.33p per share)
- Worldwide sales up 4% to £920m ape (H1 2010: £881m ape)
- IFRS operating profit £523m (H1 2010: £542m)
IFRS profit before tax £473m (H1 2010: £537m)
- EEV operating profit 12% higher at £662m (H1 2010: £589m)
EEV per share up 5% to 139p (31/12/2010: 132p)
- IGD surplus £4.0bn (31/12/2010: £3.7bn)
- Annualised IFRS return on equity1 14.6% (H1 2010: 18.6%)
Tim Breedon, Group Chief Executive, said:
"In the first half of 2011, Legal & General has continued to deliver on our key metrics. Continued strong cash generation and confidence in our future prospects has led the Board to increase the interim dividend by a further 25% to 1.66p per share.
"We remain confident in our business model and strategy. Our leading market positions in UK savings, annuities, protection and asset management are delivering healthy returns for shareholders. Sales volumes continue to grow, and we are developing attractive new businesses both in the UK and internationally.
"Economic uncertainties remain, volatility continues in financial markets and the life assurance sector is entering a period of significant regulatory change. In these conditions it is prudent to maintain a strong balance sheet. Our IGD surplus of £4bn provides sufficient capital to exploit opportunities as they emerge, to continue to grow the business and to provide protection from economic and regulatory risks."
Returns - dividend increased by 25%
|H1 2011||H1 2010|
|Half year dividend per share (pence)||1.66||1.33|
|Net cash generation per share (pence)||7.33||6.40|
|IFRS operating profits earnings after tax per share (pence) (basic)||6.69||6.73|
|IFRS earnings per share (pence) (basic)||6.16||6.90|
|Average number of shares (m)||5,828||5,827|
1. Annualised return on equity is calculated by taking annualised profit after tax attributable to equity holders of the Company (calculated as twice the half year number) as a percentage of the average shareholders’ capital employed, being an average of the opening and closing shareholders’ equity during the period.
Notes to editors
A copy of this announcement can be found in "Results", under the "Financial information" section of our shareholder website at http://www.legalandgeneralgroup.com/investors/results.cfm.
A video of Tim Breedon, Group Chief Executive discussing these results is also available.
A presentation will take place at 09.30 GMT today at One Coleman Street, London, EC2R 5AA. There will be a live webcast of the presentation which can be accessed at http://investor.legalandgeneral.com/investors/results.cfm. A replay will be available on this website later today. There will be a live listen only teleconference link to the presentation. Investors should dial +44 (0)20 3059 5845. There is no passcode.
Technical queries on the results should be e-mailed to firstname.lastname@example.org or to one of our team.
Answers to technical queries will be posted to our shareholder website on 4 August 2011
For more information please contact:
Head of Group Corporate Communications
t: +44 (0) 2031 242095
m: +44 (0) 7515 324001
Group Corporate Affairs Director
t: +44 (0) 2031 242090
About Legal & General
Legal & General Group Plc.
One Coleman Street
Registered in England. Registered Number: 1417162.
Legal & General Group Plc is a holding company, subsidiary undertakings of which are fully authorised as appropriate under the Financial Services and Markets Act in respect of their investment activities in the UK.
© Legal & General Group Plc 2011