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Legal and General AuM hits £1tn mark; profits hurt by losses in investment portfolio

By BFN News | 07:27 AM | Wednesday 06 March, 2019

Insurer Legal and General said Wednesday its assets under management breached the £1tn mark even as profits were hurt by weaker performance in its investment portfolio amid wild swings in markets late last year. For the 12 months ended 31 December, pre-tax profits rose just 2% to £2.23bn and total gross written premiums rose by 1.9% to £2.580bn. Pre-tax profits were impacted by losses in its investment portfolio of £207m for the year, from a profit of £35m a year earlier, though this was partially offset by gains in Legal & General Retirement. Legal and General retirement delivered a 22% increase in operating profit to £1,115m; investment management operating profit increased by 2% to £407m; insurance operating profit increased by 2% to £308m and general insurance operating profit decreased to flat from a profit of £37m a year earlier. Operating profits rose 12% to £2.15bn a year, above the 8% growth expected by analysts at Deutsche Bank. Legal and General investment management assets under management rose 3% to £1.015bn. The solvency ratio fell modestly to 188% from 189% last year. The company raised its dividend by 7% to 16.4p a share. Looking ahead, the company said that between 2011 and 2015 'we achieved an EPS CAGR of 10% per annum, and are on track to deliver a similar performance out to 2020. Since 2015 we have delivered an EPS CAGR of 11%.' 'We became the UK's first £1 trillion investment manager, executed a record £9 billion of pension risk transfer deals and invested billions in the UK's future infrastructure and cities. Abroad, we grew US protection new business annual premiums by 12% and increased international assets by 13,' said Nigel Wilson, Group Chief Executive 'Excluding our £433m positive mortality release, operating profit was up 10% to £1.9bn and we had EPS growth of 7%, DPS growth of 7%, book value growth of 13% and an RoE of 23%.' 'We are a globally trusted brand. Our strategy positions us well despite the broader environment, our current trading is strong and we expect this momentum to continue in 2019.' Story provided by

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