2017 Half Year Results
We announced our Half Year Results on 9 August 2017.
9 Aug 2017
Download the full release (PDF: 2.39 MB)
Strong financial performance in H1 2017: profit before tax1 up 41% to £1.2bn
Financial highlights2:
- Operating profit up 27% to £988m (H1 2016: £777m)
- Profit after tax up 43% to £952m (H1 2016: £667m)
- Earnings per share up 41% to 15.94p (H1 2016: 11.27p)
- Interim dividend3 of 4.30p per share (H1 2016: 4.00p)
- Net release from operations for retained business4 up 6% to £724m (H1 2016: £681m)
- Return on equity5 of 26.7% (H1 2016: 20.6%)
- Solvency II surplus6 increased by £1.0bn to £6.7bn (FY 2016: £5.7bn)
- Solvency II coverage ratio6 of 186% (FY 2016: 171%)
- H1 2017 results include base mortality release7 of £126m
Business highlights:
- LGR PRT8 new annuity business of £1.6bn (H1 2016: £0.7bn)
- LGR retail9 total sales up 98% TO £769m (H1 2016: £389m)
- LGIM AUM up 13% at £951.1bn (H1 2016: £841.5bn)
- LGIM external net inflows of £21.7bn (H1 2016: £9.6bn)
- Group-wide direct investment up 48% AT £11.8bn (H1 2016: £8.0bn)
- LGI gross premiums up 6% to £1,338m (H1 2016: £1,260m)
Nigel Wilson, Group Chief Executive, said: “L&G delivered 41% growth in EPS to 15.9p, 41% growth in profit before tax to £1.2 billion and a 26.7% Return on Equity. This includes a base mortality release of £126m as part of our review of longevity assumptions. Our consistently improving financial performance is due to: investing for the long term in our market leading businesses, excellent execution by my colleagues and delivering value for customers.Our strategy, based around six long term macro and demographic growth drivers, not only allows us to grow L&G’s business, but also the scale of our long term capital enables us to support inclusive growth across the UK. We are replicating our successful UK model with measured expansion in the US, where we are experiencing increasing customer acceptance and an ever improving financial performance.
Our business model has proven to be resilient to political, economic and regulatory uncertainties. We are not being complacent as we recognise that there are currently some structural weaknesses in the UK economy. Notwithstanding this we have tremendous momentum across our business, a strong AA- rated balance sheet and increasing access to global growth opportunities, therefore we remain confident in our ability to deliver growth.”
