LONDON (Alliance News) - Legal & General Group PLC Wednesday reported a 10% rise in 2013 pretax profits, supported by strong growth across the business, particularly its retirement and investment management divisions.
The FTSE 100 life pensions and investment company reported a GBP1.13 billion pretax profit, compared with GBP1.03 billion in 2012, while total revenue grew by 12% to GBP39.3 billion. Expenses grew to GBP37.9 billion from GBP33.8 million, up 12%.
Revenue grew as the insurer's gross written premiums swelled to GBP6.16 billion from GBP5.67 billion, while fees from fund management and investment contracts grew to GBP1.04 billion from GBP875 million. Investment return grew to GBP32.22 billion from GBP28.83 billion.
The retirement division's operating profit grew to GBP310 million from GBP281 million, while the investment management division's operating profit rose to GBP304 million from GBP272 million.
Legal & General's net cash generation grew to GBP1.00 billion from GBP865 million in 2012, with the full-year dividend raised to 9.30 pence from 7.65 pence.
"Legal & General moved up another gear in 2013, delivering record financial results and accelerating growth across all areas. Net inflows were GBP17 billion including GBP9 billion in LGIM and GBP8 billion into Cofunds. LGIM now has GBP450 billion of AUM, and Cofunds, with GBP64 billion of assets is the UK's largest Savings platform," Nigel WIlson, chief executive, said in a statement.
"Annuity premiums grew by 78% to over GBP4 billion, protection gross premiums were over GBP1.3 billion, and we intermediated GBP28 billion of mortgages. We successfully completed four acquisitions in 2013 and have announced a further acquisition in 2014," Wilson added.
He said the company would provide dividend guidance for the coming years when the implications of Solvency II, a new package of rules facing European insurers, become more clear.
In a conference call with journalists, Wilson said Legal & General would be considering bolt-on acquisitions, adding that the company would like to be big in the US.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Legal & General (LGEN)
