General Insurance Article - L&G preliminary results 2015


Nigel Wilson, Group Chief Executive, said: “Legal & General delivered excellent growth in cash, profits and dividends in 2015: Net cash generation and Operating Profit were both up by 14%, EPS was up 11 % and we are increasing the dividend by 19%. Over the last 4 years we have delivered sustained growth, Net Cash has increased 10%, EPS has increased 11% and the dividend increased by 20% on average each year.

 “We had already moved to a capital-lite model for UK pension risk transfer business in anticipation of the new Solvency II regime and we will use our Solvency II surplus capital of £5.5bn to continue to deliver on our strategy. We have a robust business model which has proved to be adept and resilient in dealing with fiscal and regulatory changes in our sector. We are planning for more global economic and market volatility and are well positioned for continued pressure on pricing and changes in product mix in our industry.

 “Our strategy is aligned to growth for our markets, meeting our customers’ needs and delivering socially useful products. We remain confident in the outlook for our business.”

 FINANCIAL HIGHLIGHTS:

 · NET CASH GENERATION UP 14% TO £1,256M (2014: £1,104M)
 · OPERATING PROFIT UP 14% TO £1,455M (2014: £1,275M)
 · PROFIT AFTER TAX UP 10% TO £1,094M (2014: £992M)
 · ADJUSTED EARNINGS PER SHARE2 UP 11% TO 18.58P (2014: 16.70P)
 · FULL YEAR DIVIDEND UP 19% TO 13.40P PER SHARE (2014: 11.25P)
 · SOLVENCY II SURPLUS3 OF £5.5BN: COVERAGE RATIO OF 169%
 · ECONOMIC CAPITAL SURPLUS OF £7.6BN: COVERAGE RATIO OF 230%

 BUSINESS HIGHLIGHTS:

 · LGIM AUM UP 8% TO £746.1BN (2014: £693.7BN)
 · LGIM EXTERNAL AUM NET FLOWS OF £37.7BN (2014: £7.5BN)
 · LGR NEW BUSINESS OF £2.9BN (2014: £6.6BN)
 · GROUP-WIDE DIRECT INVESTMENTS UP 22% TO £7.0BN (2014: £5.7BN)
 · UK RETAIL PROTECTION PREMIUMS UP 5% TO £1,112M (2014: £1,056M)
 · LGA PREMIUMS UP 6% TO $1,183M (2014: $1,117M)

 For the full results, please click here

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