Legal and General’s share price fell 2% on results day

‘Challenging markets’ for the insurer

Meanwhile, he said that the company, which owns the UK’s biggest asset management business as well as its pensions and insurance divisions, had performed well in a difficult year. “We are on course to achieve our five-year targets, and demonstrated resilience in challenging markets to achieve record new business volumes in pension risk transfer, UK annuities and US protection, increasing our store of future profit,” Simões told investors. “Our international assets under management and alternative assets portfolio continue to grow, as does our position in the UK defined contribution pensions market.”

Operating profit remained flat at £1.67 billion for the full year 2023 (£1.66 billion in 2022). Pre-tax profits, excluding longevity and internal pension scheme accounting, fell to £561 million from £1 billion last year. This was due to the lower than expected valuation of property assets, the closure of Legal and General’s Modular Homes business and the write-down of its investment in Onto.

However, the insurer saw record volumes across its businesses, with £13.7 billion of institutional annuities (£10.5bn retained premium), £1.4 billion of individual annuities and $175m of US protection new business premium. Meanwhile, new business CSM (contractual service margin – the profit yet to be released from insurance contracts) contributed £1.2 billion (2022: £0.9 billion) and CSM grew 9% to £13 billion (£11.9 billion in 2022).