The Motley Fool

Legal & General Group Plc Earnings Up 13%

Legal & General Group (LSE: LGEN) had a strong first half of the year, with operating profits up in all but one of its divisions, which resulted in earnings per share growing 13% to 7.82p and net cash generation was up 23% to £500m. This performance gave the board the confidence to boost the interim dividend 22%.

While the gains were felt nearly across the board, improved profitability in the UK insurance operations and strong growth in international assets in the investment management division (referred to by its acronym LGIM) played the big roles.

5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!

According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…

And if you click here we’ll show you something that could be key to unlocking 5G’s full potential...

Better underwriting and some good luck with weather helped the UK insurance operations turn in a combined operating ratio of 81% versus 99% a year ago (the combined ratio measures operating costs against premiums, so a lower number is better). This helped the division increase net cash generation by £44m to £126m.

LGIM reported net fund inflows (new-money clients want L&G to invest for them less money clients take back) up £8bn with £7.5bn of that coming from overseas. International expansion is one of management’s stated growth drivers, so the first-half performance is encouraging, as is the announcement that L&G received approval in July from the regulators in Hong Kong to sell products in the country.

Legal & General’s shares have appreciated 50% in the past year, keeping pace with competitors Standard Life and Prudential. As management thinks the strong first-half growth will continue into the second half of the year, there could be more to come.

As an added bonus, rising interest rates could increase demand for the company’s annuity and savings products, but it could be some time before we see meaningful increases there.

Investors in Legal & General haven’t been disappointed from a growth or income standpoint, as the shares still yield 4% even after the strong rise in share price over the past year.

If you already own Legal & General or think the shares have run their course, you may be interested in this report on The Motley Fool’s favourite growth share for 2013.

You can get the free report just by clicking here.

> Neither Nate nor The Motley Fool own shares of Legal & General Group.

“This Stock Could Be Like Buying Amazon in 1997”

I'm sure you'll agree that's quite the statement from Motley Fool Co-Founder Tom Gardner.

But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.

What's more, we firmly believe there's still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.

And right now, we're giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!