Legal and General has announced it will keep its final 2020 dividend flat due to the financial impact from Covid-19.
As part of an update to the stock market this morning (12 October), the insurer outlined its five-year targets and said it has delivered a “resilient” performance this year.
The insurer said its annuity asset portfolio “performed well” against the volatile market backdrop during the pandemic.
From 2021, the insurer plans to increase its dividend at ‘low to mid-single digits’ as part of the new targets.
The firm confirmed it aims to have cash and capital generation, and net surplus generation, exceed dividends between 2020 and 2024.
Nigel Wilson, the group’s CEO, said: “Legal and General has a clear and well established strategy, and five strong businesses with distinct competitive advantages. The markets we operate in are large and growing and we are well placed to capitalise.
“We have announced today a clear set of five year financial ambitions, delivering an attractive combination of income and growth. We remain ambitious for the future, and are committed to delivering profitable growth through Inclusive Capitalism and ESG.”