The following is a summary of the Legal & General Group Plc (LGGNY) Q4 2023 Earnings Call Transcript:
Financial Performance:
Legal & General posted an operating profit of £1.7 billion for 2023.
There was a noteworthy increase in new business volumes, predominantly in institutional retirement and the PRT business.
The company's solvency ratio was reported as 224%.
Full-year dividends were raised by 5% to £20.34, signifying satisfactory financial health.
Legal & General's institutional retirement segment saw a prosperous year in the UK.
Success in generating capital was demonstrated, with a steady operating profit across divisions such as LGRI (£886 million) and retail insurance (£436 million).
Capital generation of £1.8 billion allowed the company to reach a durable balance sheet with a Solvency II coverage ratio of 224%.
Legal & General Group Plc aims to sustain dividends growth by 5% for 2024.
Business Progress:
The company's continued strategy for diversification and international expansion is showing positive results, particularly in their business operations.
Legal & General has enhanced its standing in real estate equity and private credit, including the launch of a clean power fund raising €400 million with NTR.
By implementing funded reinsurance, the company has managed to effectively contribute towards its financial standing.
The protection business witnessed improvements in the U.S. market. However, retail protection slowed down due to rate changes and a sluggish mortgage market.
Legal & General anticipates significant growth in the global private assets market, which is predicted to grow by £9 trillion over the next four years.
The company succeeded in handling unrealized losses and showed resilience in managing its retail business.
Legal & General plans to strategically invest in technology enhancements across its business units to stay competitive.
The company anticipates a continuous rise in the Bulk Purchase Annuity market competition and perceives it as a testament to the sustainability of their business model.
Legal and General Group expects to achieve higher returns on risk moving forward, aiming for an operating profit of £600 million to £700 million in total by the end of 2025.
More details: LEGAL & GENERAL GROUP SPON ADR EACH CNV INTO 5 ORD GBP0.025 IR
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