Annual profits

Legal & General Group PLC posts solid annual profit growth

The group said the 11% rise in operating profit “marks a return to our long-term growth rate, having withstood the pandemic.”

Legal & General Group PLC (LSE:LGEN) reported strong profit growth for 2021 as it benefited from the post-pandemic economic rebound and the easing of COVID-19 restrictions.

The asset management group reported operating profit of £2.26 billion for the year to 31 December 2021, up 11% from 2020 and in line with the company’s guidance for growth double digits announced with interim results.

“This marks a return to our long-term growth rate, having weathered the pandemic,” L&G said in a statement.

After-tax profits jumped 28% to £2.05bn, with earnings per share (EPS) of 34p, up 72% on a year earlier and 19% on 2019 before the pandemic.

Operating profit at pensions firm LGRI fell 6% to £1.15billion last year, while investment management division LGIM reported operating profit growth of 4 % to £422m, with assets under management increasing by 11% to £1.42bn.

The Solvency II coverage ratio increased from 175% to 187%. The company estimated its coverage rate to be 198% on March 7, 2022.

The group said it saw opportunities in the UK government’s upgrade plans to create new assets in housing, physical and digital infrastructure, urban regeneration, SME finance and venture capital.

“The expected Solvency II reform, the roll-out of the UK government’s upgrade program and our growing international business underscore our confidence in our ability to continue to deliver a wide range of opportunities for profitable growth,” said the director. General Sir Nigel Wilson. .

L&G has proposed a final dividend of 13.27p, giving a full-year payout of 18.45p, down from 17.57p for 2020.