Legal & General Group reports higher profits

Profit after tax attributable to equity holders – up 12% to £2.29 billion
Operating profit from Legal & General Retirement Institutional – up 9% to £1.26 billion
Operating profit from Legal & General Capital – up 10% to £509 million
Operating profit from Legal & General Investment Management – down 19% to £340 million
Operating profit from Retail – up 33% to £825 million
Group operating profit –   up 12% to £2.52 billion

Of the £825 million operating profit for Retail, £173 million came from UK insurance; £168 million, US insurance; and £484 million, retail retirement.

Group chief executive Sir Nigel Wilson, who is retiring but will remain at the helm until his successor takes over, commented: “We have delivered another strong result in 2022, ahead of market expectations, with operating profit of £2.5 billion and EPS (earnings per share) of 38.3p, both up 12%, cash generation of £1.9 billion up 14%, capital generation of £1.8 billion up 10%, dividends up 5% to 19.37p, and an ROE (return on equity) of 21%.

“Our diversified and highly synergistic business model continues to deliver significant benefits. Our balance sheet is strong and highly resilient, with a record solvency ratio of 236%, and we have once again received 100% of cash flows due from our direct investments.

“At a time when many households are being affected by the rising cost-of-living, our commitment to inclusive capitalism is more important than ever to help improve the lives of our customers, build a better society for the long term, and create value for our shareholders.”

Meanwhile, Wilson’s replacement is currently being determined via a “rigorous” process, with both internal and external candidates being considered. The departing CEO came onboard as chief financial officer in 2009 before assuming the top post in 2012.