Legal & General Group (LGEN)

Sector:

Insurance

Index:

FTSE 100

254.10p
   
  • Change Today:
    -1.40p
  • 52 Week High: 256.30
  • 52 Week Low: 205.80
  • Currency: UK Pounds
  • Shares Issued: 5,980m
  • Volume: 956,280
  • Market Cap: £15,194m
  • RiskGrade: 166

Legal & General lifts dividend as FY profits rise

By Michele Maatouk

Date: Wednesday 09 Mar 2022

LONDON (ShareCast) - (Sharecast News) - Legal & General reported a jump in 2021 profit on Wednesday and lifted its dividend as it benefited from a post-pandemic economic recovery and an easing of restrictions.
Full-year pre-tax profit rose 39% to £2.49bn, while profit after tax was up 28% to £2.05bn, exceeding $2bn for the first time. Earnings per share were 72% higher compared to 2020 at 34.19p, and 19% above 2019.

Operating profit was 11% higher on the year at £2.25bn, consistent with the double-digit guidance provided at the first-half results. Meanwhile, the solvency II coverage ratio was 187%, up from 175% a year earlier.

The company's return on equity came in at 20.5% versus 17.3% the year before and L&G declared a full-year dividend of 18.45p, up 5% on the year.

L&G hailed "good" new business volumes and "strong" net flows. The company's alternative asset or capital investment business, LGC, saw the biggest gain in operating profit, up 68% to £461m, underpinned by a bounce-back in the housebuilding market and valuation increases.

Chief executive Sir Nigel Wilson said: "The expected reform of Solvency II, the roll-out of the UK government's levelling up programme, and our growing international businesses underscore our confidence in our ability to continue delivering on a broad range of profitable growth opportunities."

At 0825 GMT, the shares were up 3.3% at 253.31p.

Keith Bowman, investment analyst at Interactive Investor, said: "In all, a combination of economic and geopolitical tensions offer some uncertainty around the outlook. Intense competition in the asset management industry is also worth remembering, as is the group's exposure to the cyclical housing market through its capital investment business.

"On the upside, L&G's exposure to ageing demographics and pension provision remains central. An investment management business with over £1 trillion of assets under management is no small player, and its five business divisions inject some degree of diversity. For now, and with its shares sat on a historic and estimated future dividend yield of over 7%, analyst consensus opinion continues to point towards a buy."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Legal and General Market Data

Currency UK Pounds
Share Price 254.10p
Change Today -1.40p
% Change -0.55 %
52 Week High 256.30
52 Week Low 205.80
Volume 956,280
Shares Issued 5,980m
Market Cap £15,194m
RiskGrade 166

Legal and General Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
84.08% above the market average84.08% above the market average84.08% above the market average84.08% above the market average84.08% above the market average
14.29% above the sector average14.29% above the sector average14.29% above the sector average14.29% above the sector average14.29% above the sector average
Price Trend
54.86% above the market average54.86% above the market average54.86% above the market average54.86% above the market average54.86% above the market average
25.00% above the sector average25.00% above the sector average25.00% above the sector average25.00% above the sector average25.00% above the sector average
Income
83.84% above the market average83.84% above the market average83.84% above the market average83.84% above the market average83.84% above the market average
14.29% below the sector average14.29% below the sector average14.29% below the sector average14.29% below the sector average14.29% below the sector average
Growth
97.87% below the market average97.87% below the market average97.87% below the market average97.87% below the market average97.87% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average

What The Brokers Say

Strong Buy 2
Buy 6
Neutral 6
Sell 1
Strong Sell 0
Total 15
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Legal and General Dividends

  Latest Previous
  Final Interim
Ex-Div 25-Apr-24 24-Aug-23
Paid 06-Jun-24 26-Sep-23
Amount 14.63p 5.71p

Trades for 28-Mar-2024

Time Volume / Share Price
09:17 1 @ 254.30p
09:16 1 @ 254.30p
09:16 4 @ 254.10p
09:16 798 @ 254.20p
09:15 391 @ 254.10p

Legal and General Key Personnel

Chair John Kingman
CFO Jeff Davies

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