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.
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.”
