REG - Legal & General Grp - L&G Full Year Results 2015 Part 1 <Origin Href="QuoteRef">LGEN.L</Origin> - Part 3
15/03/2016 07:05
- Part 3: For the preceding part double click ID:nRSO0687Sb
change particularly in relation to the UK pensions market, and in the applicable tax framework including as a result of devolution and implementation of the OECD BEPS recommendations. We are supportive of regulation in the markets where we operate where
it ensures trust and confidence and can be a positive force on business. We remain, however, vigilant to the risk that future legislative and regulatory change may have unintended consequences for the sectors in which we operate. We seek to actively
participate with government and regulatory bodies in the UK and Europe to assist in the evaluation of change so as to develop outcomes that meet the needs of all stakeholders, and have actively participated in the Financial Advice Market Review, the
Capital Markets Review and various tax consultations. Internally, we evaluate the impact of all legislative and regulatory change as part of our formal risk identification and assessment processes, with material matters being considered at the Group Risk
Committee and the Group Board. Our internal control framework includes processes that seek to ensure ongoing compliance with relevant legislation and regulation. We cannot, however, completely eliminate the risks that controls processes may fail or that
historic accepted practices may be reappraised by regulators.
New entrants may disrupt the landscape of the markets in which we operateAs has been seen other business sectors, it is possible that alternative digitally-enabled providers of financial service products emerge with lower cost business models or innovative service propositions and capital structures disrupting the current competitive landscape. Customer facing businesses are becoming increasingly digitalised. Huge structural changes have already changed the face of travel, music, retail and media industries. There is already strong competition in all our markets, and although we have had
considerable past success at building sufficient scale to offer low cost products it is possible that alternative providers emerge with lower cost or new service models that present new challenges for our businesses. We are executing a strategy that has
digital at its heart, using digital platforms that allow for globalisation and high scale. We have already delivered online facilities for auto-enrolment, investment platforms and individual retirement products and continue to focus on ensuring that
customer engagement is at the heart of the digital experience. We've a clear strategy, with the diversity and scale to expand organically in our selected markets.
The financial services sector is increasingly becoming a target of 'cyber crime'. As we and our business partners increasingly digitalise our businesses, we are inherently exposed to the risk that third parties may seek to disrupt our online business operations, steal customer data or perpetrate acts of fraud using digital media. A significant cyber event could result in reputation damage and financial loss. The financial services sector continues to see attempts by third parties to seek and exploit perceived vulnerabilities in IT systems. Potential threats include denial of service attacks, network intrusions to steal data for the furtherance of financial
crime, and the electronic diversion of funds. We're focused on maintaining a robust and secure IT environment. Working with our business partners, we seek to ensure the security of our systems with proactive responses to emerging threats, however, the
evolving nature of cyber threats means that residual risks will remain. During 2015 the Group Board received an update on cyber risks and our control framework.
ENQUIRIES
Investors:
Laura Doyle Head of Investor Relations
020 3124 2088
Stephen Thomas Investor Relations Manager
020 3124 2047
Media:
John Godfrey Corporate Affairs Director
020 3124 2090
Richard King Head of Group Corporate Communications
020 3124 2095
Michelle Clarke Tulchan Communications
020 7353 4200
Notes
A copy of this announcement can be found in "Results", under the "Financial
information" section of our shareholder website at
http://www.legalandgeneralgroup.com/investors/results.cfm.
A presentation to analysts and fund managers will take place at 9.30am UK time
today at One Coleman Street, London, EC2R 5AA. There will be a live webcast of
the presentation which can be accessed
at http://www.legalandgeneralgroup.com/investors/results2016.html
A replay will be available on this website later today.
There will be a live listen only teleconference link to the presentation.
Details below:
PARTICIPANT DIAL-IN NUMBERS
LOCATION YOU ARE DIALLING IN FROM NUMBER YOU SHOULD DIAL
UNITED KINGDOM 020 3059 8125
UNITED STATES (TOLL FREE) 1 855 287 8125
ALL OTHER LOCATIONS +44 20 3059 8125
2016 Financial Calendar Date
Ex-dividend date 28 April 2016
Record date 29 April 2016
Annual general meeting 26 May 2016
Payment date of 2015 final dividend 9 June 2016
Half-year results 2016 9 August 2016
DEFINITIONS
Operational cash generation is the expected release from in-force business for
the UK non-profit Insurance and Savings and LGR businesses, the shareholder's
share of bonuses on with-profits business, the post-tax operating profit on
other UK businesses, including the medium term expected investment return on
LGC invested assets, and dividends remitted from LGA, LGF and LGN.
Net cash generation is defined as operational cash generation plus new
business surplus.
Operating profit measures the pre-tax result excluding the impact of
investment volatility, economic assumption changes and exceptional items.
Operating profit therefore reflects longer-term economic assumptions for the
Group's insurance businesses and shareholder funds, except for LGA which
excludes unrealised investment returns to align with the liability measurement
under US GAAP. Variances between actual and smoothed economic assumptions are
reported below operating profit. Exceptional income and expenses which arise
outside the normal course of business in the year, such as merger and
acquisition, start-up and closure costs, are excluded from operating profit.
Adjusted earnings per share is calculated by dividing profit after tax from
continuing operations, attributable to equity holders of the Company,
excluding recognised gains and losses associated with held for sale and
completed business disposals, by the weighted average number of ordinary
shares in issue during the period, excluding employee scheme treasury shares.
Annualised return on equity is calculated by taking annualised profit after
tax attributable to equity holders of the Company, excluding gains and losses
associated with held for sale and completed business disposals, as a
percentage of the average shareholders' capital employed, being an average of
the opening and closing shareholders' equity during the period.
FORWARD LOOKING STATEMENTS
This announcement may contain certain forward-looking statements relating to
Legal & General, its plans and its current goals and expectations relating to
future financial condition, performance and results. By their nature,
forward-looking statements involve uncertainty because they relate to future
events and circumstances which are beyond Legal & General's control,
including, among others, UK domestic and global economic and business
conditions, market related risks such as fluctuations in interest rates and
exchange rates, the policies and actions of regulatory and Governmental
authorities, the impact of competition, the timing impact of these events and
other uncertainties of future acquisition or combinations within relevant
industries. As a result, Legal & General's actual future condition,
performance and results may differ materially from the plans, goals and
expectations set out in these forward-looking statements and persons reading
this announcement should not place reliance on forward-looking statements.
These forward-looking statements are made only as at the date on which such
statements are made and Legal & General Group Plc does not undertake to update
forward-looking statements contained in this announcement or any other
forward-looking statement it may make.
This information is provided by RNS
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