Press releases

H1 2020: Resilient operating earnings from continuing divisions of £1.1bn and a robust balance sheet

We continue to build Inclusive Capitalism as we support our Customers, Colleagues and Communities in the face of COVID-19.

5 Aug 2020

Full release and analyst pack

Nigel Wilson, Group Chief Executive: “In H1, Legal & General delivered resilient operating profits, a robust balance sheet and highly relevant products and services. Our ambition is for a similar performance in H2. We kept all our employees on full pay, executed significant commercial and investment projects, and continued to provide a reliable service to our customers without any government financial support. We are committed to driving forward an investment-led, climate-friendly COVID recovery incorporating the very best aspects of Inclusive Capitalism."
Financial highlights1
  • Operating profit from continuing divisions2 of £1,128m (H1 2019: £1,154m), with 3 of 5 businesses delivering growth
  • Operating profit of £946m (H1 2019: £1,005m), demonstrating resilience as specific COVID-19 estimated impacts totalled £(129)m3
  • Interim dividend of 4.93p per share (H1 2019: 4.93p), providing flexibility as the economic effect of COVID-19 becomes clearer
  • Profit after tax4 of £290m (H1 2019: £874m), principally reflecting the formulaic impact of lower interest rates on LGI and the unrealised impact of market movements
  • Solvency II operational surplus generation from continuing operations2 was £0.8bn (H1 2019: £0.7bn
H1 2020 highlights

Our balance sheet is robust:

  • Solvency II coverage ratio5 of 173% (H1 2019: 171%)
  • Our traded credit portfolio (excluding gilts), which is actively managed, has had no defaults and has seen net downgrades to sub-investment grade of 0.6% since the start of COVID-19; compared to the market which saw 1.5%. Our £3.5bn IFRS Credit Default Reserve has remained unutilised

And our businesses continue to perform resiliently:

  • LGR total annuity assets of £80.7bn (FY 2019: £75.9bn), with total new business premiums of £4.2bn
  • Group-wide Direct Investment up 8% at £27.9bn (FY 2019: £25.7bn)
  • LGIM AUM up 4% at £1,241bn (FY 2019: £1,196bn)
  • LGI GWP up 5% to £1,475m (H1 2019: £1,409m)

  1. The Alternative Performance Measures within the Group’s financial highlights are defined in the glossary, on pages 93 to 97 of this report.
  2. Excludes Mature Savings and General Insurance.
  3. Specific COVID-19 impacts of LGR (+£32m); LGC (-£60m); LGI (-£80m); and Group Costs
    (-£21m). Excluding these, operating profit was up 7%. Please see  page4 for more information.
  4. Profit after tax attributable to equity holders.
  5. Solvency II coverage ratio on a shareholder basis, which is adjusted for the Own Funds and SCR of the With-profits fund and the Group final salary pension plans.

Further information

EH photo.jpg

Ed Houghton

Group Strategy & Investor Relations Director


Alyssa Manning

Investor Relations Director

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Sujee Rajah


Investor Relations


John Godfrey

Director of Levelling Up (2006 - 2023)

Group Communications

T: 020 3124 2090

Email John Godfrey

Notes to editors

Established in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with £1.2 trillion in total assets under management (as at FY23) of which c40% (circa £0.5 trillion) is international.

We have a highly synergistic business model, which continues to drive strong returns. We are a leading international player in Institutional Retirement, in Retail Savings and Protection, and in both public and private markets through our Asset Management division. Across the Group, we are committed to responsible investing and dedicated to serving the long-term savings and investment needs of customers and society.

As at 7 June 2024, we estimate the Group’s Solvency II coverage ratio to be 224%.

As at 11 June 2024, Legal & General has a market capitalisation of £14.6 billion.