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)