8 March 2017Insurance

Legal & General’s insurance business stagnates in 2016

Life and general insurance provider Legal & General has recorded a 12 percent rise in operating profit in 2016, but the insurance division stagnated during the period.

Overall, operating profits from the company’s divisions grew to £1.90 billion in 2016 from £1.79 billion in 2015. The improvement was driven by Legal & General Retirement, which boosted operating profit by 27 percent to £811 million in 2016.

At the same time, Legal & General Insurance recorded a 1 percent rise in operating profit to £317 million, while General Insurance grew 2 percent to £52 million.

Legal & General Insurance operating profit was flat year-on-year, in part as a consequence of a £39 million lower expected release from the UK retail protection back book, and adverse claims experience of £43 million, primarily in group protection, the company said in a statement. In addition, the 2015 comparator for Legal & General Insurance was impacted by one-off reserve strengthening primarily relating to the modelling of reinsurance contracts in retail protection.

Today’s top stories

AIG selects Luxembourg for EU unit and reveals post-Brexit plan

Hong Kong warns on shrinking re/insurance hub, seeks growth in ILS

Insurers on UK '17 Budget: investment plan well received but taxes remain an issue

US P&C reinsurers expand in 2016 but underwriting profitability falls

Did you enjoy reading this story?  Sign up to our free daily newsletters and get stories like this sent straight to your inbox.

Already registered?

Login to your account

To request a FREE 2-week trial subscription, please signup.
NOTE - this can take up to 48hrs to be approved.

Two Weeks Free Trial

For multi-user price options, or to check if your company has an existing subscription that we can add you to for FREE, please email Elliot Field at efield@newtonmedia.co.uk or Adrian Tapping at atapping@newtonmedia.co.uk


More on this story

Insurance
9 May 2017   Life and general insurance provider Legal & General (L&G) has appointed Carol Hughes to the role of head of regional broker within its general insurance division.
Insurance
10 July 2017   S&P Global Ratings said on July 7 that it reduced its outlook for UK-based life insurer Legal & General’s (L&G’s) subsidiaries as the group’s spending is outpacing retained earnings.