The Legal & General Group Plc (LON: LGEN) share price has fallen 14.1% this year and just hit a new yearly low as investor sentiment towards the company remains bearish. The financial services company recently released its half-year results, which triggered the latest leg of the downtrend.
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The life insurance and asset management company revealed that it had faced withdrawals from customers, leading to a 10% decline in the value of assets under management, which was the main factor that drove its shares lower despite the firm half-year profits beating analysts' expectations.
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Legal & General Investment Management revealed that it had total assets under management of £1.2 trillion ($1.52 trillion). The company also experienced net outflows of £12.3 billion at the end of June 2023. While its overall profits were lower than in H1 2022, they still beat analysts expectations.
The company reported an operating profit of £941 million compared to the £958 million profit recorded in H1 2022. The firm recorded a Solvency II coverage ratio of 230%, with a surplus of £9.2 billion, marking an improvement from last year’s 212% solvency ratio.
Legal & General also announced a 5.71p dividend payout per share for its shareholders, marking a 5% increase from the 5.44p dividend payout in H1 2022. The company reported a profit after tax of £316 million, marking a decline from the £575m profit recorded in H1 2022.
Sir Nigel Wilson, Legal & General’s Group CEO, said: “We remain on track to achieve our five-year ambitions and deliver attractive returns for our shareholders. In H1, we delivered £0.95bn of both IFRS operating profit and capital generation, together with a Solvency II ratio of 230% and a surplus of £9.2bn. The dividend is up by 5%. LGRI and LGC performed strongly, LGIM results stabilised, and Retail’s performance – while impacted by competition in some areas – was bolstered by growing annuity sales and progress in US protection. We wrote £4.9bn of UK PRT, deploying just £106m of capital, underlining the benefits of our synergistic business model.”
The Legal & General (LGEN) share price.
The Legal & General (LGEN) shares are down 14.11% for the year. Will they keep falling?
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.