Press releases

H1 2023 Results: £0.95bn of operating profit and capital generation, stock of deferred profits up to £13.8bn, DPS up 5% to 5.71p and SII ratio of 230%

15 Aug 2023

Press release and analyst pack

Resilient financial performance1
  • Operating profit of £941m (H1 2022: £958m)
  • Solvency II coverage ratio2 of 230%, with surplus of £9.2bn (H1 2022: 212%)
  • Solvency II operational surplus generation of £947m (H1 2022: £946m)
  • Profit after tax3 of £316m (H1 2022: £575m)
  • Interim dividend of 5.71p, up 5% (H1 2022: 5.44p)
£947m capital generation with significant dividend headroom4
  • We are on track to achieve our five-year (2020-2024) ambitions. To date:
    • Capital generation of £5.9bn (£8.0-9.0bn by 2024)
    • Dividends of £3.6bn (£5.6-5.9bn by 2024)
    • Net surplus generation over dividends of £0.6bn5
  • The Board’s intention is to continue to grow the dividend at 5% per annum to FY246
Stock of deferred profits up to £13.8bn as new business outpaces backbook release7
  • New business deferred profits of £0.6bn
    • LGRI premiums of £5.0bn (H1 2022: £4.4bn) generating deferred profit of £0.4bn8
    • In H2, LGRI has already written a further £1.8bn UK and $1.0bn US PRT
Sir Nigel Wilson, Group Chief Executive:

“We remain on track to achieve our five-year ambitions and deliver attractive returns for our shareholders. In H1, we delivered £0.95bn of both IFRS operating profit and capital generation, together with a Solvency II ratio of 230% and a surplus of £9.2bn. The dividend is up by 5%. LGRI and LGC performed strongly, LGIM results stabilised, and Retail’s performance – while impacted by competition in some areas – was bolstered by growing annuity sales and progress in US protection. We wrote £4.9bn of UK PRT, deploying just £106m of capital, underlining the benefits of our synergistic business model. I’d like to thank my colleagues for their contribution and ongoing commitment to inclusive capitalism, serving our shareholders, customers and wider society.”                                          

  1. The Group uses a number of Alternative Performance Measures (including adjusted operating profit, return on equity and LGIM AUM) to enhance understanding of the Group’s performance. These are defined in the glossary, on pages 102 to 110 of this report. This is the first time we are reporting under IFRS 17. Comparatives have been restated accordingly. For further information please see Note 2.01.
  2. Solvency II coverage ratio of 230% is post £0.8bn payment of 2022 final dividend.
  3. Profit after tax attributable to equity holders.
  4. Capital generation defined as Solvency II operational surplus generation. Cash generation previously defined as net release from operations is no longer reported under IFRS 17.
  5. Net surplus generation defined as Solvency II operational surplus generation less new business strain.
  6. In stating this aim, the Board has carefully considered the Group’s financial position and had regard to the general economic outlook for the UK and the other countries in which the Group operates.
  7. Stock of deferred profit refers to the gross of tax combination of established Contractual Service Margin “CSM” (net of reinsurance) and Risk Adjustment “RA” under IFRS 17.
  8. Figures presented include an adjustment for the new business CSM/RA uplift associated with the L&G pension schemes’ partial buy-in transaction in H1, which is eliminated in the 30 June 2023 consolidated balance sheet. In H2 we expect to move to a full buy-out of the pension schemes and recognise a further c£0.1bn of CSM/RA.


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Ed Houghton

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Blake Carr

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Natalie Whitty

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Group Head of Corporate Media & Issues

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Graeme Wilson


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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 management1 of which 40% is international. We have a unique and highly synergistic business model, which continues to drive strong returns. Legal & General provides powerful asset origination and management capabilities directly to clients, which also underpin our leading retirement and protection solutions. We are a leading international player in Pension Risk Transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Our purpose is to improve the lives of our customers and create value for our shareholders. Through inclusive capitalism, we are investing in long-term assets, such as real estate and infrastructure, that can help build a better society for the future.

1Data as at 31 December 2023.