Press releases

H1 2021 Results: Strong financial performance – 14% growth in operating profit and 22% ROE

4 Aug 2021

Press release and analyst pack

One Central Square Cardiff
Nigel Wilson, Group Chief Executive: "Thanks to the hard work and dedication of my colleagues across Legal & General, we have delivered a strong set of financial results, with EPS up 21% since H1 2019. And we expect to deliver double digit growth in operating profit at the full year.

We’re continuing to make investments that are economically, environmentally and socially valuable, in line with our longterm commitment to delivering Inclusive Capitalism and supporting the Building Back Better and Levelling Up agenda.

We are already a leading asset manager and we remain focused on continuing to scale-up our asset origination capabilities which are a unique and important component of our synergistic business model which has driven our 22% ROE."

Strong financial performance1, now well above pre-COVID 2019 levels
  • Operating profit of £1,079m, up 14% (H1 2020: £946m), with double-digit growth or higher in LGC, LGI and LGRR
  • Earnings per share of 17.78p, up 21% on H1 2019 (14.74p) and up significantly on H1 2020 (4.89p)
  • Profit after tax2 of £1,065m (H1 2020: £290m) and Return on equity of 22.0% (H1 2020: 6.3%)
  • Solvency II coverage ratio3 of 183% (H1 2020: 173%)
  • Interim dividend of 5.18p, up 5% (H1 2020: 4.93p), consistent with our stated ambition

Growing contribution to our five-year (2020-2024) ambitions4
  • Cash generation of £0.9bn, up 14% year on year. Capital generation of £0.8bn, up 9% year on year
  • Cumulative cash and capital generation of £2.4bn and £2.3bn respectively, against our ambition of £8.0-9.0bn by 2024
  • Cumulative dividends declared £1.4bn (H1 2021: £309m, 2020: £1,048m) against our ambition of £5.6-5.9bn by 2024

Good PRT new business volumes and strong net flows
  • Global PRT new business premiums of £3.1bn (H1 2020: £3.4bn) with £2bn already won/in exclusive negotiations for H2
  • LGIM external net flows of £27.4bn (H1 2020: £6.2bn), with AUM up 7% to £1.3tn
  • Individual annuity premiums up 15% and LGI new business annual premiums up 6

Unique and growing alternative asset origination capabilities
  • Legal & General Capital (LGC) operating profit doubled to £250m (H1 2020: £123m)
  • ESG-aligned asset origination expertise in clean energy, residential property, digital infrastructure and SME finance
  • Third party capital AUM of £6.8bn against our ambition of £14bn by 2025

Long-term, growth-oriented and highly synergistic business model
  • An established track record: HY11 to HY21 CAGR of 11% in EPS, 12% in DPS and 7% in book value per share
  • Highly synergistic: five focused divisions that create a virtuous circle of internal demand and supply, supporting c20% ROE
  • Long-term and predictable value creation: 40+ year duration business with earnings driven by a growing stock of assets
  • Attractive global growth markets: retirement solutions ($53tn), asset management ($136tn), climate change ($20tn)5
  • A longstanding commitment to Inclusive Capitalism and a leader in ESG: rated #1 Life & Health insurer by ShareAction

  1. 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 101 to 105 of this report.
  2. Profit after tax attributable to equity holders. Performance driven by strong business and market performance, in addition to partial reversal of formulaic impact of rates on LGI.
  3. Solvency II coverage ratio on a shareholder basis, which is adjusted for the Own Funds and SCR of the Group final salary pension plans. 183% coverage ratio is post £0.8bn payment of 2020 final dividend and provision for £0.3bn sub-debt redemption.
  4. Cash generation defined as net release from operations and Capital generation defined as Solvency II operational surplus generation.
  5. $53tn retirement solutions market, Willis Towers Watson, 2021 Global Pension Assets Study; $136tn asset management market, BCG, Global Asset Management 2021; $20tn climate change market based on forecast that $130tn of investment is needed to 2050 in order to achieve zero emissions, scaled pro-rata to 2025. BloombergNEF: New energy outlook 2021

Further information

EH photo.jpg

Ed Houghton

Group Strategy & 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.