The first half of 2018 seems to have been something of a mixed bag for UK insurer Legal & General (L&G) – the firm reporting a climb in operating profits, but a drop in profits before tax as the firm took the toll of the general volatility being felt throughout the global financial markets.
In its earnings report published earlier this morning, L&G outlined that its operating profit across the group was up 7% to £1.06 billion compared to £994 million a year earlier. This was due to five of its six divisions enjoying profit increases year-over-year. However, with markets swinging against the firm its profits before tax dropped by 9% to £942 million this time around. Now the firm expects to release larger levels of capital before the end of the year with life expectancy on the up.
“Legal & General again delivered consistent, positive results with five of our six businesses increasing their operating profits for the first half of 2018,” said group chief executive Nigel Wilson. “However, a reduction in positive investment variance meant earnings per share were down from 1419p to 1300p.
“We expect to have an exceptionally busy H2. We are currently actively quoting on over £20 billion of UK pension risk transfer deals, including over £7 billion of transactions in exclusive negotiations expected to close in H2.”
The company seems confident of a strong second half particularly after the launch of a £50 million fund for gender diversity and the announcement of its affordable homes division.
