Legal and General Group has reported a 10 per cent increase in adjusted net operating profit to GBP822 million for the first six months of the year, with net cash generation up 16 per cent to GBP727 million.
Profit after tax for the period is up 22 per cent to GBP677 million (H1 2015: GBP750 million), while earnings per share are up 24 per cent to 11.27p (H1 2015: 9.11p) and adjusted earnings per share up 14 per cent to 11.20p (H1 2015: 9.79p).
The company’s Solvency II surplus stands at GBP5.3 billion (H1 2015: GBP5.5 billion) with a coverage ratio of 158 per cent (163 per cent on a shareholder basis).
Nigel Wilson, group chief executive, says: “We have continued to execute our strategy well. Shareholders’ profit before tax grew 23 per cent to GBP826m, adjusted EPS grew 14 per cent to 11.2p, net cash generation grew by 16 per cent to GBP727m and the group delivered a 20 per cent RoE. We have a strong balance sheet, which gives us the flexibility and capacity to invest in support of each of our businesses.
“There are many different views of the outlook for economic growth, the state of financial markets and political uncertainty. We reflect this in our approach to risk management. While we cannot be immune to this uncertainty, we remain confident that we will continue to deliver attractive returns for shareholders, great value to customers and better outcomes for society. Our five long-term growth drivers, ageing populations, globalisation of asset markets, creating real assets, welfare reform and digital remain unaffected and will continue to provide many growth opportunities.”