LONDON (Alliance News) - Financial services provider Legal & General Group PLC on Wednesday reported record operating profit in 2017 as it nears GBP1.00 trillion of assets under management, while it has also increased its dividend.
Operating profit for 2017 rose 32% to GBP2.06 billion from GBP1.56 billion in 2016, while pretax profit increased 32% to GBP2.09 billion from GBP1.58 billion, with the company also booking a one-off US tax benefit of GBP246.0 million.
Legal & General's gross written premiums fell to GBP7.93 billion in 2017 from GBP10.25 billion in 2016. Total income was down to GBP40.49 billion from GBP73.47 billion in 2016, while assets under management in the Investment Management wing rose 10% to GBP983.3 billion.
The company is to pay a final dividend of 11.05 pence per share compared to 10.35p in 2016. This takes the 2017 total payout to 15.35p, up 7% on 14.35p in 2016.
Legal & General's solvency II coverage ratio in 2017 was 189%, compared to 171% the year before.
The Legal & General Retirement business' operating profit jumped 54% to GBP1.25 billion, with Investment Management operating profit up 9% to GBP400.0 million in 2017. Operating profit for Legal & General Capital increased 6% to GBP272.0 million, and the Insurance arm's operating profit was flat at GBP303.0 million.
General Insurance operating profit, however, fell 29% to GBP37.0 million due to higher than expected non-weather related household claims in the first quarter of the year.
Looking ahead, Legal & General said it is confident on continuing its momentum in 2018, with the firm "well placed" for further growth in the current year.
Chief Executive Nigel Wilson said: "Legal & General's strategic focus, alignment to global growth drivers and excellent execution, allowed us to deliver a record GBP2.1 billion operating profit in 2017. Our shareholders are enjoying terrific earnings per share and return on equity growth, while our 'inclusive capitalism' model ensures customers and society also benefit.
"We remain confident that our unique business model, strong management team, collaborative culture, and strategic focus can deliver further growth in 2018 and beyond."
Shares were up 1.0% on Wednesday at a price of 260.40p each.
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