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

H1 2019: Operating profit up 11% to £1 billion, record H1 global annuity sales of £7 billion 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)

Download the full press release via the link below

Nigel Wilson

Legal & General’s five businesses collectively delivered another strong set of results in H1 2019, with EPS rising 13% to 14.74p, operating profit up 11% to £1bn and a RoE of 20%. We have a depth of management, track record and opportunities that mean all five of our businesses should contribute to future growth. The opportunity in global Pension Risk Transfer, retail retirement solutions, and DC is immense and expected to continue...

Nigel Wilson, Group Chief Executive

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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.

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