L&G's operating profit rises by 12%; SII capital coverage leaps to record 236%

Written by Adam Cadle

08/03/2023

L&G has seen its operating profit rise 12% to £2,523m for 2022, returns on equity edged higher to 20.7% from 20.5%, and financial strength improved further, with Solvency II (SII) capital coverage leaping from 187% to a record 236%.

The group has also seen its Pension Risk Transfer business increase once again, with the insurer taking premiums of £9.5bn onto its books last year, an increase of £2.3bn.

The impact of bond market weakness was felt through LGIM’s assets under management which fell by over £100bn to £1.2bn, despite inflows from clients of £47bn during the year.

Group CEO Nigel Wilson said: “Our diversified and highly synergistic business model continues to deliver significant benefits. Our balance sheet is strong and highly resilient, with a record solvency ratio of 236% and we have once again received 100% of cash flows due from our direct investments.

“At a time when many households are being affected by the rising cost of living, our commitment to inclusive capitalism is more important than ever to help improve the lives of our customers, build a better society for the long-term and create value for our shareholders."

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