Profits up at L&G

Published on

Legal & General has reported a 23% rise in pre-tax profits for the first half of 2016 to £826 million.

Insurance operating profit fell by £48m to £138m, which L&G said was primarily due to around £40m lower than expected release from the UK protection back book, adverse mortality experience of £18m, mainly in the group protection business, and the introduction of the annual Flood Re levy for the general insurance business of £9m, the cost of which was ‘expensed’ in H1 2016.

Nigel Wilson, group chief executive, said: “We have continued to execute our strategy well. Shareholders’ profit before tax grew 23% to £826m, adjusted EPS grew 14% to 11.2p, net cash generation grew by 16% to £727m and the Group delivered a 20% RoE. We have a strong balance sheet, which gives us the flexibility and capacity to invest in support of each of our businesses.

“There are many different views of the outlook for economic growth, the state of financial markets and political uncertainty. We reflect this in our approach to risk management. While we cannot be immune to this uncertainty, we remain confident that we will continue to deliver attractive returns for shareholders, great value to customers and better outcomes for society.

“Our five long-term growth drivers, ageing populations, globalisation of asset markets, creating real assets, welfare reform and digital remain unaffected and will continue to provide many growth opportunities.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Second-steppers take larger mortgages as deposits shrink

Home movers are turning to higher loan-to-value mortgages as rising property prices and smaller...

Property industry urged to help shape smart data rules

Property businesses are being urged to respond to a government call for evidence that...

Northern first-time buyers pay £10k price for delaying purchase

First-time buyers in northern cities risk losing thousands of pounds by postponing a purchase,...

Virgin Money to raise product transfer fixed rates

Virgin Money will increase residential and buy-to-let product transfer fixed rates on Friday, 24...

Mortgage broker revenue rises as adviser numbers fall

Reported revenue from mortgage broking increased by 15.9% to £1.6bn during 2025 despite a...

Latest publication

Other news

Second-steppers take larger mortgages as deposits shrink

Home movers are turning to higher loan-to-value mortgages as rising property prices and smaller...

Property industry urged to help shape smart data rules

Property businesses are being urged to respond to a government call for evidence that...

Northern first-time buyers pay £10k price for delaying purchase

First-time buyers in northern cities risk losing thousands of pounds by postponing a purchase,...