Legal & General reports boom in profits as it feels post-pandemic lift
Asset management giant Legal & General reported a surge in profits and hiked its dividend payouts today as it felt the lift of a post-pandemic boom across its divisions.
Profits after tax jumped 28 per cent to £2.05bn, up from £1.60bn last year, with bosses saying the firm had now returned to its long-term target growth rate after a pandemic slowdown.
L&G’s flagship retirement division saw profits dip on 2020 levels however, delivering operating profits of £1.15bn, down from £1.23bn last year.
Assets under management at its investment management arm surged 11 per cent to £1.4tn meanwhile, of which £479bn was from international customers.
Bosses at L&G said they had bolstered their coiffers in line with Solvency II regulation in 2022, but the planned changes to the regulation would unlock investment opportunities in the year ahead.
“We have a track record of value creation and a longstanding commitment to Inclusive Capitalism and ESHG,” said chief executive Sir Nigel Wilson.
“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.”
Shareholders are in line for a boosted dividend of 18.45p per share in line with targets, and bosses said it was well on track to deliver its dividend ambition of £5.6-5.9bn by 2024.