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TOP NEWS: Legal & General annual profit rises amid high interest rates

8th Mar 2023 10:20

(Alliance News) - Legal & General Plc on Wednesday reported a firm increase in annual profit and a record solvency ratio in its annual report.

The London-based financial services and asset management company, which specialises in life insurance and pensions, said pretax profit increased by 6.9% to GBP2.66 billion in 2022 from 2021's figure of GBP2.49 billion.

Total protection gross premiums increased 8.0% to GBP3.13 billion from GBP2.9 billion.

Chief Executive Officer Nigel Wilson said the result brought the company "ahead of market expectations" with a record solvency ratio of 236%, up by 187% in 2021. This is attributed to the rising interest rates on insurance reserves, the company said.

The company declared a full-year dividend per share of 19.37 pence, a 5.0% increase from 18.45p a year prior.

The firm said they are "confident" in meeting their financial goals and are "well-positioned to deliver long-term profitable growth".

By 2024, Legal & General aim to generate cash and capital of GBP8 billion - GBP9 billion to exceed dividends of GBP5.6 billion. It also predicts the company's earnings per share will grow faster than dividends, with dividend growing at 5% by the end of 2024.

Legal & General shares were down by 2.5% at 259.00 pence each on Wednesday morning in London.

By Sabrina Penty; Alliance News reporter

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