Business
L&G Half Year Results 2020 Part 1
L&G Half Year Results 2020 Part 1.
About this update from Legal & General Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 1407V\n Legal & General Group Plc\n 05 August 2020\n \n \n \n H1 2020: Resilient operating earnings from continuing divisions of £1.1bn and a robust balance sheet\n \n \n Financial highlights1\n \n \n · \n \n Operating profit from continuing divisions2 of £1,128m\n \n (H1 2019: £1,154m), with 3 of 5 businesses delivering \n growth \n \n \n · \n \n Operating profit of £946m\n \n (H1 2019: £1,005m), demonstrating resilience as\n specific COVID-19 estimated impacts totalled £(129)m3\n \n \n · \n \n Interim dividend of 4.93p per share \n \n (H1 2019: 4.93p), \n providing flexibility as the economic effect of COVID-19 becomes clearer \n \n \n · \n \n Profit after tax4 of £290m \n \n (H1 2019: £874m), principally reflecting the formulaic impact of lower interest rates on LGI and the unrealised impact of market movements \n \n \n · \n \n Solvency II operational surplus generation from continuing operations2 was £0.8bn \n \n (H1 2019: £0.7bn)\n \n \n \n H1 2020 highlights\n \n \n Our balance sheet is robust:\n \n \n · \n \n Solvency II coverage ratio5 of 173% \n \n (H1 2019: 171%)\n \n \n · \n \n Our traded credit portfolio (excluding gilts), which is actively managed, has had no defaults and has seen net downgrades to sub-investment grade of 0.6% since the start of COVID-19; compared to the market which saw 1.5%. Our £3.5bn IFRS Credit Default Reserve has remained unutilised\n \n \n \n \n \n \n And our businesses continue to perform resiliently:\n \n \n · \n \n LGR total annuity assets of £80.7bn \n \n (FY 2019: £75.9bn), with total new business premiums of £4.2bn \n \n \n · \n \n Group-wide Direct Investment up 8% at £27.9bn \n \n (FY 2019: £25.7bn)\n \n \n · \n \n LGIM AUM up 4% at £1,241bn \n \n (FY 2019: £1,196bn) \n \n \n · \n \n LGI GWP up 5% to £1,475m \n \n (H1 2019: £1,409m)\n \n \n \n \n \n We continue to build Inclusive Capitalism as we support our Customers, Colleagues and Communities in the face of COVID-19; for more details of our approach please see page 4.\n \n \n \n \n \n \n \n \n \"In H1, Legal & General delivered resilient operating profits, a robust balance sheet and highly relevant products and services. Our ambition is for a similar performance in H2. We kept all our employees on full pay, executed significant commercia...