Legal & General reported flat annual operating profits as it set aside an extra £110m in Covid-19 insurance claims due to the emergence of new virus strains.
Operating profit fell slightly to £2.21bn from £2.28bn with three of its five divisions delivering growth. L&G’s fund management arm saw assets under management increase 6.9% to £1.3bn.
Pre-tax profit fell to £1.78bn from £2.11bn. The company has already said it would keep its dividend unchanged at 17.5 a share.
The company’s solvency ratio fell came in at 177% compared with 184% a year earlier. L&G estimated a ratio of 192% at March 5.
“The immediate outlook for the broader economy over the near term is still highly uncertain and will depend on a number of factors, including vaccine efficacy and distribution, as well as government responses to the challenges ahead,” the company said on Wednesday.
