Press releases
2022 Results: Operating profit up 12% to £2.5bn, EPS up 12% to 38.3p, ROE of 21% and Solvency coverage of 236%
8 Mar 2023
Strong financial performance1
- Operating profit of £2,523m, up 12% (2021: £2,262m)
- Profit after tax2 of £2,291m, up 12% (2021: £2,050m)
- EPS of 38.33p, up 12% (2021: 34.19p)
- Return on equity of 20.7% (2021: 20.5%)
- Solvency II coverage ratio of 236% (2021: 187%)
- As at 3rd March 2023 we estimate the coverage ratio was 240%3
- Full year dividend of 19.37p, up 5% (2021: 18.45p), consistent with our ambition
On track to achieve our five-year (2020-2024) ambitions4
- Cash generation of £1.9bn, up 14%. Capital generation of £1.8bn, up 10%
- Cumulative cash and capital generation on track with strong dividend headroom. To date:
- Cash generation of £5.1bn and capital generation of £4.9bn (£8.0-9.0bn by 2024)
- Dividends of £3.3bn (£5.6-5.9bn by 2024)
- Net surplus generation5 over dividends of £0.7bn
Good new business volumes and rapidly increasing international presence
- Global PRT new business premiums of £9.5bn (2021: £7.2bn), of which 23% international
- LGC alternative AUM up 21% to £4.2bn (2021: £3.4bn), of which 12% international
- LGIM AUM of £1.2tn, of which £441bn (37%) international
- LGIM external net flows of £49.6bn (2021: £34.6bn), of which 43% international
- Protection gross premiums up 8% to £3.1bn (2021: £2.9bn), of which 39% international
Sir Nigel Wilson, Group Chief Executive: "We have delivered another strong result in 2022, ahead of market expectations, with operating profit of £2.5bn and EPS of 38.3p, both up 12%, cash generation of £1.9bn up 14%, capital generation of £1.8bn up 10%, dividends up 5% to 19.37p and an ROE of 21%. Our diversified and highly synergistic business model continues to deliver significant benefits. Our balance sheet is strong and highly resilient, with a record solvency ratio of 236% and we have once again received 100% of cash flows due from our Direct Investments. At a time when many households are being affected by the rising cost of living, our commitment to inclusive capitalism is more important than ever to help improve the lives of our customers, build a better society for the long-term and create value for our shareholders."
- The Group uses a number of Alternative Performance Measures (including operating profit, net release from operations, return on equity and LGIM AUM) to enhance understanding of the Group’s performance. These are defined in the glossary, on pages 89 to 92 of this report.
- Profit after tax attributable to equity holders.
- Coverage ratio before the payment of the 2022 final dividend.
- Cash generation defined as net release from operations and Capital generation defined as Solvency II operational surplus generation.
- Net surplus generation defined as Solvency II operational surplus generation less new business strain.
Further information
Ed Houghton
Group Strategy & Investor Relations Director
Blake Carr
Investor Relations Director
Nim Ilankovan
Investor Relations Director
John Godfrey
Director of Levelling Up
Group Communications
T: 020 3124 2090
Notes to editors
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which a third is international. We also provide powerful asset origination capabilities. Together, these underpin our leading retirement and protection solutions: we are a leading international player in pension risk transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.
*at 31 Dec 2022