Press release
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
Full press release and analyst pack PDF
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."
Further information
