Weather claims cut L&G’s GI profit by 28% in H1

Legal & General (L&G)’s general insurance business made an operating profit of £28m in the first half of 2014, down 28% on the £39m it made in last year’s first half.

The profit drop was caused by the £12m of weather-related claims the company incurred in the first quarter of 2014, which pushed the combined operating ratio up 7 percentage points to 88% (H1 2013: 81%).

Gross written premiums were down 3% to £178m (H1 2013: £183m).

Despite the fall in profit and revenue, L&G said it was seeking to increase the general insurance business’s contribution to the group “both through organic growth and potential bolt-on acquisition opportunities”.

Group-wide, L&G achieved a 9% increase in first-half profit after tax to £507m (H1 2013: £466m).