Legal & General Group 2023 Results Preview

Operating Profit Forecast

Legal & General Group is set to announce its results for 2023 on Wednesday. Analysts anticipate an operating profit of 1.75 billion pounds ($2.22 billion) for the year ended Dec. 31, compared to GBP1.685 billion under the IFRS 17 accounting standard in the previous year.

Solvency II Coverage Ratio Forecast

The financial services provider is also expected to reveal a solvency II coverage ratio of 217% for the year, a crucial indicator of balance-sheet strength, down from the previous 230% at the end of the first half.

Stock Performance

Currently, Legal & General Group shares are trading at approximately 243 pence, reflecting a 7.8% decrease in value over the past year. In comparison, the FTSE 100 index has experienced a 3.85% decline over the same period.

Key Points to Monitor

Anticipated Performance Results

• Institutional Retirement
• Capital
• Investment Management
• Retail

As CEO Antonio Simoes prepares to present the company's first results under his leadership, the focus will be on the performance of each division. Key factors to consider include new business flows in bulk annuities, the success of alternative asset investments, net fund flows for both passive and active investments, and the effects of increasing interest rates on bond and equity portfolios.

Strategic Outlook and Projections

Analysts are eager to hear management's outlook for the upcoming year. It is anticipated that Simoes will unveil a refreshed operational and capital management strategy in the first half of the year as the company nears the completion of its 2020-2024 plan. One area of interest is the expected increase in annuity volumes and solvency capital generation by 2024. This growth is projected to be supported by factors such as longevity releases driving solvency capital generation, an expanding asset base under management, shrinking U.K. corporate bond spreads, and a robust demand for annuities.

Shareholder Payouts Forecasted for the Year

In terms of shareholder payouts, consensus pencils in a 20.34 pence a share dividend for the year, in line with guidance. The board has said it intends to grow dividends at a 5% rate per year to 2024.