Legal & General Group, has reported a strong financial performance in 2022, with an operating profit of £2,523m, up 12% from 2021.
The company also saw an increase in profit after tax, with a figure of £2,291m, up 12% from the previous year. Earnings per share (EPS) also saw a 12% increase, reaching 38.33p.
Legal & General Group achieved a return on equity of 20.7%, which is a slight increase from last year’s figure of 20.5%.
The company’s solvency II coverage ratio also saw a significant increase, reaching 236% compared to 187% in 2021. As of March 3rd, 2023, the coverage ratio is estimated to be 240%.
The company’s cash generation in 2022 reached £1.9bn, which is up 14% from the previous year.
Capital generation also increased by 10% to £1.8bn. Legal & General Group’s dividend for the full year was 19.37p, which is up 5% from last year and consistent with the company’s ambition.
Legal & General Group is on track to achieve its five-year ambitions, set for 2020-2024. The company’s cumulative cash and capital generation is on track, with £5.1bn in cash generation and £4.9bn in capital generation to date. The company’s net surplus generation over dividends is £0.7bn.
Legal & General Group also saw good new business volumes and a rapidly increasing international presence in 2022.
The company’s global PRT new business premiums reached £9.5bn, with 23% being international. The LGC alternative AUM increased by 21% to £4.2bn, with 12% being international. LGIM AUM reached £1.2tn, with £441bn (37%) being international. The company’s protection gross premiums increased by 8% to £3.1bn, with 39% being international.
Sir Nigel Wilson, group chief executive of Legal & General Group, said: “We have delivered another strong result in 2022, ahead of market expectations. Our balance sheet is strong and highly resilient, with a record solvency ratio of 236%.
“At a time when many households are being affected by the rising cost of living, our commitment to inclusive capitalism is more important than ever to help improve the lives of our customers, build a better society for the long-term, and create value for our shareholders.”
