Legal & General Half Year Results.

[idpickering]

H1 2022 Results: Continued strong performance -8% growth in Operating profit and EPS, 21% ROE and
SII coverage ratio of 212%

· Operating profit of £1,160m, up 8% (H1 2021: £1,079m)

· Earnings per share of 19.28p, up 8% on H1 2021 (17.78p)

· Profit after tax[2] of £1,153m (H1 2021: £1,065m) and R eturn on equity of 21.3% (H1 2021: 22.0%)

· Solvency II coverage ratio[3] of 212% (H1 2021: 182%)

· Interim dividend of 5.44p, up 5% (H1 2021: 5.18p)

Growing contribution to our five-year (2020-2024) ambitions[4]

· Cash generation of £1.0bn, up 22% year on year. Capital generation of £0.9bn, up 14% year on year

· Cumulative cash and capital generation of £4.3bn and £4.1bn respectively , against our ambition of £8.0-9.0bn by 2024

· Cumulative dividends declared £2.5bn (H1 2022: £324m, 2020-21 £2,147m) against our ambition of £5.6-5.9bn by 2024

Strong PRT new business volumes and LGIM net flows

· Global PRT new business premiums of £4.4bn (H1 2021: £3.1bn), including our largest ever US transaction

· LGIM record H1 external net flows of £65.6bn (H1 2021: £27.4bn), with AUM down to £1.3tn due to market movements

· Protection premiums of £1,605m (H1 2021: £1,500m) and Individual annuity premiums of £453m (H1 2021: £483m)

A strong and resilient balance sheet

· No defaults in H1 or for the last 13 years. £2.7bn credit default provision remains unutilised[5]

· 99% investment grade £73.2bn annuity bond portfolio

· 100% of scheduled cashflows received from our Direct Investments

· Strong and growing IFRS and Solvency II balance sheet

Long-term, growth-oriented, and highly synergistic business model

· An established track record: HY11 to HY22 CAGR of 11% in EPS, 11% in DPS and 8% in book value per share

· Highly synergistic: four focused divisions that create a virtuous circle of internal demand and supply, supporting c20% ROE

· Long-term and predictable value creation : 40+ year duration business with earnings driven by a growing stock of assets

· Attractive global growth markets: retirement solutions ($57tn), asset management ($149tn), climate change ($20tn)[6]

· A longstanding commitment to Inclusive Capitalism and a leader in ESG : rated #1 Life & Health insurer by ShareAction

"We've made a good start to the year, with operating profit and EPS up 8%, cash and capital generation up double digits, DPS up 5% and a return on equity of 21%. We have delivered for our institutional clients and retail customers, while generating good volumes and margins in a buoyant PRT market and continuing to scale LGC at pace - both in the UK and now also in the US - originating assets for our own business and for third parties, whilst also delivering a positive outcome for the economies where we invest. Our balance sheet is strong and highly resilient, with a solvency ratio of 212% and with 100% of cash flows received from our Direct Investments. We are committed to providing financial security for our customers and colleagues in a tough economic climate and remain confident in our ability to grow profits sustainably and at attractive returns over the long-term."

Sir Nigel Wilson, Group Chief Executive.

https://www.investegate.co.uk/legal---3 ... 00043247V/

Part 2; https://www.investegate.co.uk/legal---3 ... 00073227V/

Part 3; https://www.investegate.co.uk/legal---3 ... 00083229V/

Also posted on Company News here; viewtopic.php?p=520874#p520874

Dividend 5.44p per share. ex Div 18 Aug 22, paid 26 Sep 22.

Ian.
.

[idpickering]

One shouldn’t fall in love with a share, but I certainly have strong feelings for LGEN.

I’d like to buy more of the share, but as of now, they weigh in as being fully weighted in capital value terms, in my 28 share HYP. The sp hasn’t moved much on market opening, but that doesn’t bother me at all. Imho, these are good results, from a solid company.

Ian.