Life insurer Legal & General Group (L&G) has reported an operating profit of £1.16 billion for H1 2022, an 8% increase from £1.07 billion from the same period last year.
L&G’s UK PRT business, delivered operating profit growth of 7% to £560 million in H122, compared to £525 million from H121.
At the same time, retail operating profit increased 14% to £332 million in H122, compared to £292 million from the same period last year.
Additionally, L&G’s Solvency II coverage ratio was 212% for H122, compared to 182% from H121.
Furthermore, L&G also reported a cash generation of £1 billion, up 22% year-on-year for H122, as well as a capital generation of £0.9 billion, up 14% year-on-year.
Sir Nigel Wilson, Group Chief Executive, said: “We’ve made a good start to the year, with operating profit and EPS up 8%, cash and capital generation up double digits, DPS up 5% and a return on equity of 21%. We have delivered for our institutional clients and retail customers, while generating good volumes and margins in a buoyant PRT market and continuing to scale LGC at pace – both in the UK and now also in the US – originating assets for our own business and for third parties, whilst also delivering a positive outcome for the economies where we invest.
“Our balance sheet is strong and highly resilient, with a solvency ratio of 212% and with 100% of cash flows received from our Direct Investments. We are committed to providing financial security for our customers and colleagues in a tough economic climate and remain confident in our ability to grow profits sustainably and at attractive returns over the long-term.”