(Sharecast News) - UK insurer Legal & General reported a 12% rise in full year operating profit, driven by record pension risk transfer deals.
The company on Wednesday said operating profit increased to ?2.1bn from ?1.9bn. Sales of bulk annuities rose to ?11.4bn from ?9.1bn in a booming UK market which reached ?40bn nationally for the first time.
L&G cited its ?4.6bn buyout for the Rolls-Royce UK Pension Fund, the largest UK bulk annuity underwritten at the time, as one of the major drivers of its financial success.
"Our business model has been very successful for us in the UK and we are continuing its expansion abroad into similar pensions markets," the company said.
"The US represents a significant market opportunity, with $3.5trln of defined benefit liabilities, of which only 6% have transacted to date."
Individual annuity sales rose 22% to ?970m, while assets under management increased 18% to ?1.2bn. Gross written premiums were up 6% to ?2.7bn.
Earnings per share grew 16% to 28.7p and the full year dividend was lifted 7% to 17.57p.
Legal & General (LGEN)25 Apr 2024 15:14
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