REG - Legal & General Grp - L&G Half-year results 2015 Part 1 <Origin Href="QuoteRef">LGEN.L</Origin> - Part 3
05/08/2015 07:01
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defined clear strategies to respond to the macro trends. We monitor as part of our on-going risk review processes factors that may impact our responses to these macro trends and seek to ensure appropriate risk mitigation plans are put in place.
A material failure in our business processes may result in unanticipated financial loss or reputation damage.We have constructed our framework of internal controls to minimise the risk of unanticipated financial loss or damage to our reputation. However, no system of internal control can completely eliminate the risk of error, financial loss, fraudulent actions or reputational damage. Our plans for growth inherently will increase the profile of operational risks across our businesses. We continue to invest in our system capabilities and business processes to ensure that we meet the expectations of our customers; comply with regulatory,
legal and financial reporting requirements; and mitigate the risks of loss or reputational damage from operational risk events. Our "three lines of defence" risk governance model seeks to ensure that business management are actively engaged in maintaining
an appropriate control environment, supported by risk functions led by the group chief risk officer, with independent assurance from Group Internal Audit.
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 on-line 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 response to emerging threats; however, the
evolving nature of cyber threats means that residual risks continue to remain.
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://investor.legalandgeneral.com/results.cfm. 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
ALL OTHER LOCATIONS +44 20 3059 8125
2015 Financial Calendar Date
Ex-dividend date 13 August 2015
Record date 14 August 2015
Payment date of 2015 interim dividend 17 September 2015
Q3 Interim Management Statement 2015 5 November 2015
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 expected investment return on LGC invested
assets, and dividends remitted from our international businesses.
Net cash generation is defined as operational cash generation less new
business strain.
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 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 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.
GOING CONCERN STATEMENT
The Group's business activities, together with the factors likely to affect
its future development, performance and position in the current economic
climate are set out in this Interim Management Report. The financial position
of the Group, its cash flows, liquidity position and borrowing facilities are
described in the Group Results. Principal risks and uncertainties are detailed
above. In addition, the financial statements include, amongst other things,
notes on the Group's objectives, policies and processes for managing its
capital; its financial risk management objectives; details of its financial
instruments and hedging activities; and its exposures to credit risk and
liquidity risk.
Whilst the economy has improved in 2015, the general climate remains, to a
degree, uncertain. However, based on the available information on the future,
the directors consider that the Group has the plans and resources to manage
its business risks successfully as it has a diverse range of businesses and
remains financially strong.
Having reassessed the principal risks, the directors considered it appropriate
to adopt the going concern basis of accounting in preparing the interim
financial information.
DIRECTOR'S RESPONSIBILITY STATEMENT
We confirm to the best of our knowledge that:
i. The consolidated interim financial statements have been prepared in
accordance with IAS 34 as adopted by the European Union;
ii. The interim management report includes a fair review of the information
required by DTR 4.2.7, namely an indication of important events that have
occurred during the first six months of the financial period and their impact
on the consolidated interim financial statements, as well as a description of
the principal risks and uncertainties faced by the company and the
undertakings included in the consolidation taken as a whole for the remaining
six months of the financial year;
iii. The interim management report includes, as required by DTR 4.2.8, a
fair review of material related party transactions that have taken place in
the first six months of the financial period and any material changes in the
related party transactions described in the last Annual Report;
iv. The group embedded value summary and explanatory notes to the
supplementary interim financial information have been prepared on the European
Embedded Value basis as set out in Note 5.06; and
v. The directors of Legal & General Group Plc are listed in the Legal &
General Group Plc Annual Report for 31 December 2014, with the exception of
Lindsay Tomlinson who retired as non-executive director of the company on 21
May 2015 and John Pollock who retired as an executive director of the company
on 21 May 2015. A list of current directors is maintained on the Legal &
General Group Plc website: legalandgeneralgroup.com.
By order of the Board
Nigel Wilson Mark Gregory
Group Chief Executive Group Chief Financial
Officer
4 August 2015 4 August 2015
This information is provided by RNS
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