Half Year Results 2019: Operating profit up 11%, record H1 global annuity sales and LGIM net flows of £60 billion

Financial highlights¹

• Operating profit of £1,005m, up 11% (H1 2018: £909m)
• Earnings per share of 14.74p, up 13% (H1 2018: 13.00p)
• Return on equity at 20.2% (H1 2018: 20.3%)
• Interim dividend² of 4.93p per share (H1 2018: 4.60p)
• Profit after tax³ up 13% to £874m (H1 2018: £771m)
• Net release from continuing operations up 29% to £858m (H1 2018: £663m)
• Solvency II operational surplus generation up by 17% to £0.8bn (H1 2018: £0.7bn)
• Solvency II coverage ratio⁴ of 171% (FY 2018: 188%), impacted by discounting the balance sheet at lower interest rates

Business highlights

• Pension Risk Transfer sales of £6,677m (H1 2018: £735m), including the UK’s largest bulk annuity with Rolls-Royce
• Individual annuity sales up 47% to £497m (H1 2018: £337m)
• Direct Investment up 36% at £22.2bn (H1 2018: £16.3bn)
• LGIM AUM up 15% at £1,135bn (H1 2018: £985bn)
• LGIM external net flows of £60.3bn (H1 2018: £14.6bn), with significant index flows from Asian clients
• Insurance GWP up 7% to £1,409m (H1 2018: £1,317m)

^1. The Alternative Performance Measures within the Group’s financial highlights are defined in the glossary, page 93.
^2. A formulaic approach is used to set the interim dividend, being 30% of the prior year full year dividend.
^3. Profit after tax attributable to equity holders.
^4. Solvency II coverage ratio on a shareholder basis is adjusted for the Own Funds and SCR of the With-profits fund and the Group final salary pension schemes.