Press release
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)
Further information
