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Legal & General boosts profit and revenue in first half of 2019

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Legal & General boosted profit and revenue in the first half of 2019, as it said the UK represents an “enormous opportunity” for its growing pensions market.

The figures

The insurer saw profit before tax rise 12 per cent year on year to hit £1bn in the six months to June.

Earnings per share grew in tandem, climbing 13 per cent to 14.7p from 13p this time in 2018.

Operating profit rose 11 per cent to £1bn, up from 2018’s £909m.

Group debt rose by £11m to £108m on total borrowings of £4.1bn, up £200m from the first half of last year.

Legal & General marginally raised its interim dividend to 4.9p per share.

What Legal & General said

Chief executive Nigel Wilson said:

“We have a depth of management, track record and opportunities that mean all five of our businesses should contribute to future growth. The opportunity in global Pension Risk Transfer, retail retirement solutions, and DC is immense and expected to continue.

“The sale of Mature Savings and General Insurance enables us to focus on businesses where we have leading market share and adjacent businesses where we see outstanding growth potential.

“Our balance sheet remains strong. We have a globally diversified asset portfolio with minimal exposure to UK sub-investment grade credit and a £3.2bn credit default reserve. H2 has started well, building on the success of our H1 transactions including the £4.6bn Rolls Royce PRT, £4bn Oxford University Future Cities deal and c.$50bn Japanese global index win.

“We are well-prepared for the full range of foreseeable Brexit outcomes and we remain confident in our ability to deliver Inclusive Capitalism, growing value for shareholders, customers and the broader economy.”