Business
L&G Half Year Results 2019 Part 1
L&G Half Year Results 2019 Part 1.
About this update from Legal & General Group Plc
[{"type":"text","content":"\n \nRNS Number : 1618I Legal & General Group Plc 07 August 2019 \n\n \nH1 2019: Operating profit up 11% to £1 billion, record H1 global annuity sales of £7 billion and LGIM net flows of £60 billion\nFinancial highlights1\n· Operating profit of £1,005m, up 11% (H1 2018: £909m)\n· Earnings per share of 14.74p, up 13% (H1 2018: 13.00p)\n· Return on equity at 20.2% (H1 2018: 20.3%)\n· Interim dividend2 of 4.93p per share (H1 2018: 4.60p)\n· Profit after tax3 up 13% to £874m (H1 2018: £771m)\n· Net release from continuing operations up 29% to £858m (H1 2018: £663m)\n· Solvency II operational surplus generation up by 17% to £0.8bn (H1 2018: £0.7bn)\n· Solvency II coverage ratio4 of 171% (FY 2018: 188%), impacted by discounting the balance sheet at lower interest rates\nBusiness highlights\n· Pension Risk Transfer sales of £6,677m (H1 2018: £735m), including the UK's largest bulk annuity with Rolls Royce\n· Individual annuity sales up 47% to £497m (H1 2018: £337m)\n· Direct Investment up 36% at £22.2bn (H1 2018: £16.3bn)\n· LGIM AUM up 15% at £1,135bn (H1 2018: £985bn)\n· LGIM external net flows of £60.3bn (H1 2018: £14.6bn), with significant index flows from Asian clients\n· Insurance GWP up 7% to £1,409m (H1 2018: £1,317m)\n \n \n \n \n\"Legal & General's five businesses collectively delivered another strong set of results in H1 2019, with EPS rising 13% to 14.74p, operating profit up 11% to £1bn and a RoE of 20%.\n \nWe have a depth of management, track record and opportunities that mean all five of our businesses should contribute to future growth. The opportunity in global Pension Risk Transfer, retail retirement solutions, and DC is immense and expected to continue. The sale of Mature Savings and General Insurance enables us to focus on businesses where we have leading market share and adjacent businesses where we see outstanding growth potential.\n \nOur balance sheet remains strong. We have a globally diversified asset portfolio with minimal exposure to UK sub-investment grade credit and a £3.2bn credit defau...