Legal & General Group (LGEN) H2 2024 earnings summary

Executive summary

• Core operating profit rose 6% to £1.6bn, with capital generation at £1.8bn and a robust balance sheet, reflecting strong business fundamentals and strategic progress.

• Portfolio rebalanced by disposing of non-core assets, including CALA (£1.35bn) and U.S. Protection business (£1.8bn), sharpening focus on three core businesses.

• Announced over £5bn to be returned to shareholders over three years via dividends and buybacks, including a new £500m buyback.

• Dividend per share increased 5% to 21.36p.

• Strategic partnership with Meiji Yasuda includes a 5% shareholding and $1bn co-investment in private markets, supporting U.S. PRT and Asset Management growth.

Financial highlights

• Solvency II coverage ratio increased to 232%, up 8 percentage points year-over-year, providing strategic flexibility.

• Operating profit increased to £1,711m from £1,667m year-over-year.

• Core operating EPS rose to 20.23p from 19.04p; operating RoE improved to 34.8% from 26.6%.

• Asset Management fee revenues up 4% to £967m despite lower average AUM, with a shift to higher margin products.

• Retail operating profit increased 12% to £504m, with record sales of £2.1bn in Retail annuities at strong margins.

Outlook and guidance

• Positive commercial momentum across all three businesses, with a strong PRT pipeline and further upside in Asset Management expected.

• Confident in meeting or exceeding three-year targets, including £5bn–£6bn OSG and 6%–9% EPS growth, supported by ongoing buybacks.

• Targets for 2025–2027: core operating EPS CAGR of 6–9%, operating RoE at least 20%, and cumulative capital generation of £5–6bn.