Legal and General pre-tax profits grow in 'excellent' H1

(Sharecast News) - Insurance firm Legal & General said on Tuesday that it had an "excellent" six months ended 30 June, with both pre-tax and core operating profits growing, underpinned by strategic progress and a reshaped portfolio. Core operating profits rose 6% to £859m, while IFRS pre-tax profits surged 28% to £406m, buoyed by a strong performance in its institutional retirement segment, which saw double-digit profit growth and over £5bn in new business written.

Legal & General highlighted that its asset management division had delivered £15m in annualised net new revenue, lifting margins to 9 basis points, even as operating profits fell from £214m to £202m, while its retail unit saw workplace pension assets top £100bn, with net new flows up 21% year-on-year to £4bn and operating profits increasing 3% to £237m.

The FTSE 100-listed firm also noted that its solvency ratio was steady at 217% and net debt had fallen from £4.71bn to £3.39bn. It also declared an interim dividend per share of 6.12p, up 2% in line with guidance.

Chief executive António Simões said: "We are growing and making the most of the synergies between our three businesses. Institutional Retirement operating profit is up double digits, and we have written over £5bn of new business at low capital strain.

"The outlook for our businesses is positive and we are firmly on track to achieve our financial targets. We are delivering on our promise to return more to shareholders with over £5bn in dividends and share buybacks over three years."

Reporting by Iain Gilbert at Sharecast.com