Legal & General Group (LGEN) H1 2024 earnings summary

Executive summary

• Core operating profit for H1 2024 rose 1% to £849m, with operating ROE up to 35.4% from 28.6% year-over-year.

• Store of future profit (CSM & RA) grew 7% year-on-year to £14.5bn.

• Interim dividend per share increased 5% to 6.00p, supported by a strong solvency ratio of 223%.

• £200m share buyback is 46% complete, with further similar buybacks planned.

• Strategy centers on sustainable growth, capital discipline, and a unified asset management platform.

Financial highlights

• Core operating profit: £849m (H1 2023: £844m); core operating EPS: 10.58p (H1 2023: 10.52p).

• Operating return on equity increased to 35.4% from 28.6% year-on-year.

• SII operational surplus generation was £897m, with a coverage ratio of 223%.

• Asset Management AUM: £1,136bn (H1 2023: £1,170bn); Private Markets AUM: £52bn (H1 2023: £48bn).

• Profit after tax: £223m, down from £377m year-over-year, mainly due to investment variances.

Outlook and guidance

• 2024 core operating profit expected to grow by mid-single digits year-on-year.

• Targeting 6–9% CAGR in core operating EPS (2024–27) and >20% operating ROE.

• Cumulative Solvency II capital generation of £5–6bn over 2025–27.

• Dividend growth of 5% to FY24, then 2% per annum through FY27, with further buybacks planned.

• Board plans to return more to shareholders over 2024–2027 than maintaining 5% annual dividend growth alone.