Legal & General profits amid slowing rise in United Kingdom life expectancy

Postado Março 08, 2018

Legal & General's annual profit rose by nearly a third to beat expectations as the insurer sold more retirement products and released £332m from its reserves.

Operating profit rose 32 per cent to £2.1bn from £1.56bn in 2016, while pre-tax profit also increased by 32 per cent to hit £2.1bn, compared with £1.58bn in the previous year.

The insurance giant has released £332m previously put aside for customers' pension payments after the predicted rise in United Kingdom life expectancy slowed.

Profit also rose at L&G's investment management business - up 9% to £400m - and its capital investment operation - up 6% to £272m.

"Legal & General's strategic focus, alignment to global growth drivers and excellent execution, allowed us to deliver a record £2.1bn operating profit in 2017", said Wilson. Net profit jumped 50% to £1.9bn, boosted by a one-off gain of £246m triggered by President Trump's changes to USA tax law.

Excluding the £332m impact from the changes in mortality rates and other one-off items, its operating profit was only 12% higher at £1.6m and earnings per share were up just 9% at 23.10p instead of 50% higher at 31.87p.

"We remain confident that our unique business model, strong management team, collaborative culture, and strategic focus can deliver further growth in 2018 and beyond".