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Legal & General Group PLC Interim Management Report 2021 Stock Exchange Release 4 August 2021 H1 2021 Results : Strong financial performance - 14 % growth in operating profit and 22 % ROE Strong financial performance¹ , now well above pre - COVID 2019 levels Operating profit of £ 1,079m , up 14 % ( H1 2020 : £ 946m ) , with double - digit growth or higher in LGC , LGI and LGRR Earnings per share of 17.78p , up 21 % on H1 2019 ( 14.74p ) and up significantly on H1 2020 ( 4.89p ) ● Profit after tax² of £ 1,065m ( H1 2020 : £ 290m ) and Return on equity of 22.0 % ( H1 2020 : 6.3 % ) Solvency II coverage ratio of 183 % ( H1 2020 : 173 % ) ● Interim dividend of 5.18p , up 5 % ( H1 2020 : 4.93p ) , consistent with our stated ambition Legal & General Growing contribution to our five - year ( 2020-2024 ) ambitions4 Cash generation of £ 0.9bn , up 14 % year on year . Capital generation of £ 0.8bn , up 9 % year on year ● Cumulative cash and capital generation of £ 2.4bn and £ 2.3bn respectively , against our ambition of £ 8.0-9.0bn by 2024 Cumulative dividends declared £ 1.4bn ( H1 2021 : £ 309m , 2020 : £ 1,048m ) against our ambition of £ 5.6-5.9bn by 2024 Good PRT new business volumes and strong net flows Global PRT new business premiums of £ 3.1bn ( H1 2020 : £ 3.4bn ) with £ 2bn already won / in exclusive negotiations for H2 LGIM external net flows of £ 27.4bn ( H1 2020 : £ 6.2bn ) , with AUM up 7 % to £ 1.3tn ● Individual annuity premiums up 15 % and LGI new business annual premiums up 6 % Unique and growing alternative asset origination capabilities ● Legal & General Capital ( LGC ) operating profit doubled to £ 250m ( H1 2020 : £ 123m ) ● ESG - aligned asset origination expertise in clean energy , residential property , digital infrastructure and SME finance ● Third party capital AUM of £ 6.8bn against our ambition of £ 14bn by 2025 Long - term , growth - oriented and highly synergistic business model An established track record : HY11 to HY21 CAGR of 11 % in EPS , 12 % in DPS and 7 % in book value per share Highly synergistic : five focused divisions that create a virtuous circle of internal demand and supply , supporting c20 % ROE ● Long - term and predictable value creation : 40+ year duration business with earnings driven by a growing stock of assets Attractive global growth markets : retirement solutions ( $ 53tn ) , asset management ( $ 136tn ) , climate change ( $ 20tn ) 5 ● A longstanding commitment to Inclusive Capitalism and a leader in ESG : rated # 1 Life & Health insurer by ShareAction ● " Thanks to the hard work and dedication of my colleagues across Legal & General , we have delivered a strong set of financial results , with EPS up 21 % since H1 2019. And we expect to deliver double digit growth in operating profit at the full year . We're continuing to make investments that are economically , environmentally and socially valuable , in line with our long term commitment to delivering Inclusive Capitalism and supporting the Building Back Better and Levelling Up agenda . We are already a leading asset manager and we remain focused on continuing to scale - up our asset origination capabilities which are a unique and important component of our synergistic business model which has driven our 22 % ROE . " Nigel Wilson , Group Chief Executive 1. The Group uses a number of Alternative Performance Measures ( including operating profit , net release from operations , return on equity and LGIM AUM ) to enhance understanding of the Group's performance . These are defined in the glossary , on pages 101 to 105 of this report . 2. Profit after tax attributable to equity holders . Performance driven by strong business and market performance , in addition to partial reversal of formulaic impact of rates on LGI . 3. Solvency II coverage ratio on a shareholder basis , which is adjusted for the Own Funds and SCR of the Group final salary pension plans . 183 % coverage ratio is post £ 0.8bn payment of 2020 final dividend and provision for £ 0.3bn sub - debt redemption . 4. Cash generation defined as net release from operations and Capital generation defined as Solvency II operational surplus generation . 5. $ 53tn retirement solutions market , Willis Towers Watson , 2021 Global Pension Assets Study ; $ 136tn asset management market , BCG , Global Asset Management 2021 ; $ 20tn climate change market based on forecast that $ 130tn of investment is needed to 2050 in order to achieve zero emissions , scaled pro - rata to 2025. BloombergNEF : New energy outlook 2021 https://about.bnef.com/new-energy-outlook/