(Bloomberg) -- Legal & General Group Plc saw assets slip to £1.6 trillion ($2 trillion) in 2023 as the UK money manager contended with some outflows in its investment management assets.

Average assets under management were 12% lower year-on-year, according to a statement Wednesday. LGIM delivered an operating profit of £274 million, down from £340 million in 2022, reflecting the impact of higher interest rates on the value of assets.

The latest numbers —  the first presented by Antonio Simoes, who took over as chief executive officer in January — mark a continued deterioration in the firm’s assets after it posted a decline last year following turmoil in its liability driven investment business. 

The provider of life insurance, pensions, retirement and investment services reported operating profit of £1.67 billion in the period for the group, missing the average analyst estimate of £1.8 billion.

The company has “demonstrated resilience in challenging markets to achieve record new business volumes in pension risk transfer, UK annuities and US protection,” Simoes said in the statement, adding it’s on course to achieve its five-year targets. 

L&G said it’s increasing its full-year dividend by 5% to 20.34 pence.

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