7th Aug 2024 11:32
(Alliance News) - Legal & General Group PLC on Wednesday reported lower half-year profit, but it still progressed its dividend.
The London-based insurer and asset manager said attributable pretax profit fell by 20% to GBP316 million in the six months that ended June 30 from GBP393 million a year before.
Core operating profit was GBP849 million, edging up from GBP844 million, and core operating earnings per share was 10.58 pence, up from 10.52p, but more negative investment variance compared to a year before lowered pretax profit.
Operating return on equity improved to 35.4% from 28.6%. L&G said its Solvency II coverage ratio was a strong 223% with a surplus of GBP8.8 billion, slightly down from 224% and GBP9.2 billion a year before.
In L&G's asset management division, assets under management totalled GBP1.14 billion as of June 30, down 2.9% from GBP1.17 billion a year before. Within this, private markets assets totalled GBP52 billion, up from GBP48 billion.
"We are making clear progress on delivering against our strategy, notably in the establishment of a single asset manager," said Chief Executive Officer Antonio Simoes.
"We have good momentum in private markets, launching a new fund to offer diversified exposure to defined-contribution pension scheme members, and establishing our affordable housing fund, leveraging pension capital to build new homes."
L&G declared an interim dividend of 6.00 pence, up 5.1% from 5.71p a year before and in line with its plan for 5% dividend growth in 2024 and 2% per annum from 2025 to 2027.
L&G also plans a GBP200 million share buyback this year, followed by similar buybacks in 2025 to 2027.
L&G shares were up 1.1% to 219.00p on Thursday morning in London. The company has a GBP13.52 billion market capitalisation.
By Tom Waite, Alliance News editor
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