2021 Results: Post tax profit exceeds £2bn for the first time, with EPS of 34p, up 19% on 2019, and ROE of 20%
Legal & General has delivered another strong set of results, with operating profit excluding mortality releases up 11% to £2,262m (2020: £2,041m), consistent with the “double-digit” guidance we provided at H1. This marks a return to our long term rate of growth, having been resilient through the pandemic.
Nigel Wilson, Group Chief Executive:"In 2021, cash and capital generation and book value per share were all up over 10% year on year, and we delivered EPS of 34.19p, DPS of 18.45p and a return on equity of 20.5%. We have a track record of value creation and a longstanding commitment to Inclusive Capitalism and ESHG. The expected reform of Solvency II, the roll-out of the UK government’s levelling up programme, and our growing international businesses underscore our confidence in our ability to continue delivering on a broad range of profitable growth opportunities."
Strong financial performance1
- Profit after tax2 of £2,050m, up 28% (2020: £1,607m)
- EPS3 of 34.19p, up 72% on 2020 (19.84p) and up 19% on 2019 (28.66p)
- Return on equity of 20.5% (2020: 17.3%)
- Operating profit of £2,262m, up 11% (2020: £2,041m)4
- Solvency II coverage ratio5 of 187% (2020: 175%)
- As at 7th March 2022 we estimate the coverage ratio was 198%6
- Full year dividend of 18.45p, up 5% (2020: 17.57p), consistent with our stated ambition
Growing contribution to our five-year (2020-2024) ambitions7
- Cash generation of £1.7bn, up 12%. Capital generation of £1.6bn, up 12%
- On track to achieve our cumulative cash and capital ambitions of £8.0-9.0bn by 2024
- On track to achieve our cumulative dividend ambition of £5.6-5.9bn by 2024
Good new business volumes and strong net flows
- Global PRT new business premiums of £7.2bn (2020: £8.8bn)
- LGC alternative AUM up 10% to £3.4bn (2020: £3.1bn)
- LGIM AUM up 11% to £1.4tn, of which £479bn (34%) is International
- LGIM external net flows of £34.6bn, 85% from International clients, up 70% (2020: £20.4bn)
- Individual annuity premiums up 5% to £957m (2020: £910m)
- Lifetime mortgage and retirement interest only advances up 7% to £848m (2020: £791m)
- LGI UK & US retail protection annual premiums up 14% to £291m (2020: £255m)
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.