Legal & General (L&G) has posted their full-year results for 2023, which included an operating profit of £1.67 billion, a slight increase from the previous year’s £1.63 billion.
Post-tax profit meanwhile decreased more than 40% to £457 million, down from 2022’s £783 million, on the back of a slump in investment performance which dragged on profit across its divisions.
On it’s retail side, operating profit decreased by 2% to £408 million, compared to £415 million in 2022, whilst insurance operating profit was up 22%, sitting at £436 million.
L&G noted that this increase was driven by ongoing profit releases in the UK and US.
The group stated that its Solvency II coverage ratio remained strong at 224%, compared to 2022’s 236%.
The company also explained that cumulatively, over the period of 2020-2024, they have an ambition to generate capital of £8-9 billion, with net capital surplus generation to exceed dividends of £5.6-5.9 billion.
L&G said that it has made further progress against these ambitions in 2023 and are set to achieve them in 2024.
From the start of the ambition period to 2023, the company has achieved £6.8 billion of cumulative capital generation while declaring dividends of £4.5 billion.
António Simões, CEO, commented: “Everything I have seen since joining the business in January has confirmed what attracted me to Legal & General. We have an authentic sense of purpose and stand out for our market-leading businesses, performance track record and strong balance sheet, delivered by talented colleagues.
“Our 2023 performance reflects these strengths. We are on course to achieve our five-year targets, and demonstrated resilience in challenging markets to achieve record new business volumes in pension risk transfer, UK annuities and US protection, increasing our store of future profit. Our international assets under management and alternative assets portfolio continue to grow, as does our position in the UK defined contribution pensions market.
“We must be as ambitious for Legal & General’s future as we are proud of our history. This is the right moment
to take a fresh perspective, build on our track record and set out a vision for profitable and sustainable growth.
I look forward to outlining our strategy and plans at our Capital Markets Event on 12 June.”
