Mar 10, 2021

Covid life insurance claims hit profits at L&G

Covid-19 has wiped £228m off operating profits at life insurer Legal & General due to hits to its insurance and housebuilding operations, but chief executive Nigel Wilson said that the pandemic could help spur renewed investment in the UK. The company said on Wednesday that it was reserving an extra £110m for expected life insurance claims, on top of £76m paid out last year. The housebuilding business, which L&G owns as part of its investment portfolio, was also hit as the pandemic forced a pause in operations. Overall, L&Gs operating profit fell 3 per cent last year to £2.2bn, and net profits dropped 12 per cent to £1.6bn due to the impact of lower interest rates. L&G declared a dividend of 17.57p per share, in line with last year. The life insurer's shares were up 0.5 per cent at 283p following the results but are below where they were trading before the pandemic started spreading in the UK last February.

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