Press release
2024 Full Year Results: Core operating profit up 6%, executing our growth strategy with a sharper focus and enhanced returns, with a £500m buyback
12 Mar 2025
Full press release and analyst packAntónio Simões on our 2024 Full Year Results
António Simões, CEO: “2024 has been a year of significant strategic progress and strong financial performance. We delivered 6% growth in our core operating profit and core EPS, alongside excellent new business volumes, while investing for the future.We are seeing positive commercial momentum as we execute our strategy with rigour and pace. By sharpening our focus and simplifying our portfolio - through the sale of Cala and US Protection - alongside our strategic partnership with Meiji Yasuda and our investment in Taurus, we are strengthening our ability to generate sustainable growth in our core businesses: Institutional Retirement, Asset Management and UK Retail. We stated at our Capital Markets Event that we intended to return more to shareholders and that is exactly what we are doing. Our clear capital allocation framework supports our plan to return over £5 billion over the next three years, through dividends and buybacks.
Looking ahead, our momentum demonstrates why we are confident in our ability to deliver on our ambitious targets, directing our capital and expertise where they can create lasting value, and making a meaningful impact for customers, shareholders and communities.”
Strong financial performance1
- Core operating profit of £1,616m and Core operating EPS of 20.23p, both up 6%
- IFRS Profit before tax2 of £542m
- Solvency II capital generation of £1.8bn and Solvency II coverage ratio3 of 232%
- A large store of future profit3 of £14.8bn
Sustainable Growth
- Institutional Retirement: £10.7bn of Global PRT written; £8.4bn UK PRT and record volumes in US and Canada
- Asset Management: £1.1trn global AUM; growth in revenue as we pivot to higher fee margin products, and average fee rate increased from 7bps to 8bps. Private Market AUM of £57bn, with £1.2bn of external committed capital from several new fund launches, and a strategic investment in US real estate equity specialist, Taurus
- Retail: Record volumes in Retail Annuities of £2.1bn and continued strong growth in Workplace DC
Sharper Focus
- Introduction of a disciplined capital allocation approach, including the creation of Corporate Investments unit
- Major disposals to unlock value and reinvest for growth: Cala (£1.35bn4) and US protection (£1.8bn4)
- Alongside the creation of a strategic partnership with Meiji Yasuda, increasing growth potential in US PRT and co-investment capital of ¥150bn5 in Asset Management
Enhanced Returns
- Dividend per Share of 21.36p up 5% and £500m buyback announced for 2025
- Intention to return more than £5bn (or c. 40% market cap6) within three years
1The Group uses a number of Alternative Performance Measures to enhance understanding of the Group’s performance, defined on pages 80-82.
2IFRS Profit before tax see Note 2.01.
3Store of future profit refers to the gross of tax Contractual Service Margin “CSM” and Risk Adjustment “RA” (net of reinsurance) under IFRS 17.
4£1.35bn reflects Cala enterprise value and £1.8bn reflects sale of US protection and US PRT partnership with Meiji Yasuda expected to complete at the end of 2025.
5This equates to c. $1bn on FX rate as at 5 March 2025.
6Market Cap. at 1 Jan 2025 = £13.542bn.
Further information
Michelle Moore
Group Strategy & Investor Relations Director
T: +44 (0)20 3124 3773Email Michelle Moore
Natalie Whitty
Group Corporate Affairs Director
Group Communications
T: +44 (0)7384 435692Email Natalie Whitty
Lauren Kemp
Head of Group Corporate Media & Issues
Group Communications
T: +44 (0)7946 514627Email Lauren Kemp
