2019 results: EPS1 up 16% to 28.7p, ROE 20.4%, record Pension Risk Transfer sales of £11.4bn and LGIM external net flows of £86bn
Legal & General’s strategy of Inclusive Capitalism, underpinned by structural growth drivers, has enabled us to achieve our five year EPS growth ambition in four years, growing 58% since 2015.
Our five growing, profitable and increasingly international businesses compete in attractive, growing markets and work together to deliver economically and socially useful customer solutions. Society’s increasing focus on net zero carbon, ESG investing and levelling up through investment in all regions plays to our strengths, creating future growth opportunities.
Having delivered EPS growth of 16% to 28.7p, dividends up 7% to 17.57p, and a 20% plus ROE, we are well - positioned for the future and we remain ambitious.Nigel Wilson, Group Chief Executive
Financial highlights2
- Operating profit from continuing divisions3,4 up 17% to £2,514m (2018: £2,152m)
- Operating profit3 of £2,131m, up 12% (2018: £1,902m)
- Earnings per share1 of 28.66p, up 16% (2018: 24.74p)
- Return on equity at 20.4% (2018: 22.7%)
- Full year dividend up 7% to 17.57p per share (2018: 16.42p)
- Profit after tax up 16% to £1,700m (2018: £1,468m) excluding mortality reserve release, including mortality reserve release profit after tax5 was £1,834m (2018: £1,827m)
- Net release from continuing operations up 15% to £1,606m (2018: £1,396m)
- Solvency II operational surplus generation up by 9% to £1.6bn (2018: £1.4bn)
- Solvency II coverage ratio6 of 184% (2018: 188%)
Business highlights
- Pension Risk Transfer sales7 of £11.4bn (2018: £9.1bn), including $1.1bn of US PRT (2018: $0.8bn)
- Individual annuity sales up 22% to £970m (2018: £795m)
- Group-wide Direct Investment up 34% at £25.7bn (2018: £19.2bn)
- LGIM AUM up 18% at £1,196bn (2018: £1,015bn)
- LGIM external net flows of £86.4bn (2018: £42.6bn)
- Insurance GWP up 6% to £2,729m (2018: £2,580m)
Further information
John Godfrey
Director of Levelling Up, Group Communications
Notes to editors
Established in 1836, L&G 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 FY25) of which c. 43% (c. £0.5 trillion) is international. We have a highly synergistic business model, which continues to drive strong returns. We are a leading player in Institutional Retirement, in Retail Savings and Protection, and in Asset Management through both public and private markets. Across the Group, we are committed to responsible investing and dedicated to serving the long-term savings and investment needs of customers and society.