FINANCIAL HIGHLIGHTS – STRONG PERFORMANCE:
Operational cash generation up 14% to £537m (h1 2012: £471m)
Net cash generation up 23% to £500m (h1 2012: £407m)
Operating profit up 10% to £571m (h1 2012: £518m)
Profit before tax up 13% to £592m (h1 2012: £523m)
Profit after tax up 15% to £464m (h1 2012: £405m)
Earnings per share up 13% to 7.82p (h1 2012: 6.93p)
Return on equity1 16.8% (h1 2012: 15.8%)
Interim dividend up 22% to 2.40p per share (h1 2012: 1.96p per share)
BUSINESS HIGHLIGHTS – ACCELERATING GROWTH:
LGIM gross flows up 66% to £24.9bn; net flows up 100% to £8.0bn
LGIM AUM £433bn (fy 2012: £406bn)
Bulk annuity sales £670m (h1 2012: £67m)
Individual annuity sales up 44% to £754m (h1 2012: £522m)
Savings AUA after acquisition of Cofunds £111bn2 (fY 2012: £70bn)
UK protection gross premiums up 3% to £689m (h1 2012: £672m)
US protection gross premiums up 10% to $503m (h1 2012: $456m)
General insurance premiums up 10% to £183m (h1 2012: £166m)
Nigel Wilson, Group Chief Executive, said:
“Legal & General delivered another very strong performance in H1 2013, with double-digit growth in sales, cash, operating profits and profit after tax. International assets under management are up 21% to £52bn. Bulk annuities and related retirement solutions for corporates are up ten-fold. We have bought Cofunds, the UK’s largest digital savings platform with £54bn assets under administration. The acquisition of Lucida, the UK annuity buy-out company, will add £1.4bn of annuity assets. We have now invested over £4bn in UK infrastructure and Direct Investments, including in the house builder, CALA Homes.
We are successfully evolving our strategy from a post-financial crisis focus on cash, to one based on cash plus growth plus selective acquisitions. It is based on five macro-trends: increasingly global asset markets, ageing populations, digital lifestyles, welfare reform and bank retrenchment. In each case, we have accelerated growth: by expanding international investment management, providing retirement solutions, growing our digital presence, increasing private protection, and direct investments.
I am excited about the future for Legal & General. In the last six months, earnings per share are up 13% and we have increased dividends per share by 22%. We remain determined to deliver value to shareholders. We are equally determined to deliver value to our millions of customers. With £433bn of assets under management in LGIM, £111bn assets under administration in Savings, and 8 million customers, we have the scale, strength and skill-sets to provide insurance, savings and investment solutions that work for individuals, families, companies and for ‘UK plc’.”
