Legal & General profit slips as investment business hurt by fall in government bond yields

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General Insurer Legal & General reported a slight fall in profit as growth in its investment business was held back by a fall in UK and US government bond yields.

For 2019, pre-tax profit fell 1% to £2.1bn and gross written premiums were up 6% on-year.

The weaker profit was blamed on a fall in government yields in the US and UK, resulting in a £234m negative investment variance in its investment management business.

Total assets under management increased 18% to £1,196 and the solvency II coverage ratio slipped to 184% from 188%.

Legal & General's retirement business reported a 27% rise in operating profit, and its general insurance division was up 2% on-year.

The full year dividend rose 7% to 17.57p per share.