Legal & General Operating Profit, Solvency Ratio Beats Views

By Elena Vardon

Legal & General Group beat expectations as it reported operating profit and a solvency ratio ahead of views for the first half of 2023 and backed its mid-term targets.

The FTSE 100-listed insurer on Tuesday posted an operating profit of 941 million pounds ($1.19 billion) for the six months ended June 30, beating the GBP834 million expected by a company-compiled consensus but below the previous year's restated figure under the IFRS 17 accounting standard of GBP958 million.

Operating profit from divisions was GBP1.14 billion, against consensus expectations of GBP1.03 billion and GBP1.15 billion a year prior.

Pretax profit fell to GBP324 million from GBP697 million on losses on investments from higher rates as well as costs from its Modular Homes closure and a write-down from its Onto investment, it said.

Its solvency coverage ratio--a key measure of balance-sheet strength--stood at 230%, while consensus had expected a ratio at 225%.

The board declared an interim dividend of 5.71 pence a share, in line with expectations.

"We remain on track to achieve our five-year ambitions and deliver attractive returns for our shareholders," said outgoing Chief Executive Nigel Wilson.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

August 15, 2023 02:35 ET (06:35 GMT)

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