Legal & General Reports Strong 2024 Performance with Focus on Core Divisions

LONDON - Legal & General Group (LON:LGEN) Plc (L&G) reported its full-year results for 2024, showcasing a strategic consolidation of its core business divisions and a robust financial performance. The Group’s reshaped business model, unveiled at a Capital Markets Event on June 12, 2024, led to the creation of a single Asset Management division and a new Corporate Investments unit aimed at maximizing the value of non-strategic assets.

The reorganization has narrowed the Group’s focus to three core divisions: Institutional Retirement, Asset Management, and Retail. This strategic move is designed to leverage synergies and enhance the Group’s purpose-driven business approach.

For the year ended December 31, 2024, L&G’s core operating profit reached £1,616 million, up from £1,531 million in 2023. The Asset Management division reported an operating profit of £401 million, a slight decrease from the previous year’s £448 million. Retail Retirement, which includes annuities and lifetime mortgage loans, contributed £504 million, compared to £449 million in 2023.

Group debt costs amounted to £216 million, while group investment projects and expenses totaled £178 million. The Corporate Investments unit, representing non-strategic assets, delivered an operating profit of £95 million, down from £136 million in 2023.

Investment and other variances resulted in a substantial deficit of £1,383 million, impacted by investment returns falling short of expectations and changes in liability discount rates. Adjusted profit before tax attributable to equity holders stood at £332 million, a significant increase from the £76 million reported in the previous year.

The total tax expense for the year was £347 million, with a profit before tax of £542 million. Profit attributable to equity holders was £191 million, with core earnings per share at 20.23 pence and basic earnings per share at 2.89 pence.

L&G’s Solvency II position remains strong, with a surplus of £9,012 million and a coverage ratio of 232%, demonstrating the Group’s financial resilience and capacity to withstand adverse market conditions.

The results are based on a press release statement, and the information contained herein is factual, offering a balanced view of L&G’s performance without speculative or promotional language. The analysis focuses on the most impactful insights for investors, excluding any marketing hype or subjective assessment.

Legal & General Group Plc’s full-year results for 2024 reflect a company that is strategically focused on its core divisions, with a solid financial performance and a strong capital position.

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