Highlights for 2013.

Highlights for 2013.

HOW WE’RE DOING

KEY PERFORMANCE INDICATORS

Key performance indicators (KPIs) are defined as the measures by which the development, performance or position of the business can be measured effectively. The Group Board reviews the KPIs annually and updates them where appropriate. New KPIs introduced in 2013 are IFRS profit before tax and Earnings per share. IGD capital surplus and EEV per share are no longer considered KPIs and are now included in Other Group Information below.

OPERATING PROFIT

£1,158m

(2012: £1,087m)

See A growth story section for a full breakdown of operating profit.

NET CASH GENERATION

£1,002m

(2012: £865m)

See Sustainable returns section for a full breakdown of net cash generation.

IFRS PROFIT BEFORE TAX

£1,134m

(2012: £1,033m)

RETURN ON EQUITY

16.1%

(2012: 15.4%)

EARNINGS PER SHARE (EPS)

15.20p

(2012: 13.84p)

FULL YEAR DIVIDEND

9.30p

(2012: 7.65p)

TOTAL SHAREHOLDER RETURN (TSR)

171%

(2012: 112%)

Over the three-year period ended 31 December 2013.

EMPLOYEE ENGAGEMENT INDEX

76%

(2012: 78%)

OTHER GROUP INFORMATION

We include measures here which have not been determined to be KPIs by the Group Board, but which we use in deciding executive remuneration or other measures which we believe are integral to the Group’s performance.

INSURANCE GROUPS DIRECTIVE (IGD) CAPITAL SURPLUS

£4.0bn

(2012: £4.1bn)

Figures after accrual of proposed dividend, based on draft unaudited regulatory returns.

IGD COVERAGE RATIO

222%

(2012: 234%)

EUROPEAN EMBEDDED VALUE (EEV) PER SHARE

190p

(2012: 173p)

Figures including embedded value of LGIM’s external funds

S&P FINANCIAL STRENGTH

AA-

(2012: AA-)

Standard & Poor’s (S&P) financial strength rating for Legal & General Assurance Society Limited

BUSINESS HIGHLIGHTS

This section provides a brief overview of our operating divisions, including a summary of the principal products and services on offer. We’ve presented the measures which best represent the development, performance or position of each division.

LEGAL & GENERAL ASSURANCE SOCIETY (LGAS)

The Group’s protection and savings business provides over six million individual customers and over 8,000 corporate schemes with life insurance, general insurance and savings plans. Our three main areas are: corporate (group pensions and group protection), retail savings (individual pensions, platforms and financial advice) and protection (life protection and general insurance).

LGAS INSURANCE GROSS WRITTEN PREMIUMS

£1,923m

(2012: £1,823m)

LEGAL & GENERAL RETIREMENT (LGR)

LGR provides retirement solutions to around one million customers. The retail business helps customers turn their pension savings into lifelong retirement income. The corporate business helps defined benefit pension schemes manage their annuity liabilities, through buy-out, buy-in and longevity insurance arrangements.

LGR ASSETS

£34.4bn

(2012: £32.2bn)

LEGAL & GENERAL INVESTMENT MANAGEMENT (LGIM)

LGIM is a global asset management business, managing investments on behalf of our institutional and retail customers. We’re the largest manager of UK pension fund assets, with over 2,800 schemes. We offer a broad range of fund management services and have a growing international presence.

LGIM ASSETS UNDER MANAGEMENT

£450bn

(2012: £406bn)

LEGAL & GENERAL CAPITAL (LGC)

LGC has completed its first year as a new division. Its core purpose is increasing the risk adjusted returns on the Group’s principal balance sheet. Since its creation, LGC has become more focused on improving returns through increasing exposure to direct investments and this remains a key objective for 2014 and beyond.

TOTAL SHAREHOLDER ASSETS

£43.4bn

(2012: £42.9bn)

LEGAL & GENERAL AMERICA (LGA)

LGA is successfully building scale in the US. We offer life insurance plans to individuals with a focus on underwriting expertise and excellence in customer service. LGA has seen strong growth in the last two years and is now a top three US term life insurer, by cover amounts. We now have over one million customers and have written more than $1 billion premiums in 2013.

LGA GROSS WRITTEN PREMIUMS

£654m

(2012: £584m)

For more information on our new structure go to Who we are section.

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