Key financial tables

HY22 Key financial tables

2.01 Operating profit

6 months	6 months	Full year
2022	2021	2021
Notes	£m	£m	£m
Legal & General Retirement Institutional (LGRI)1	2.03	560	525	1,154
Legal & General Capital (LGC)	2.04	263	250	461
Legal & General Investment Management (LGIM)	2.05	200	204	422
Retail	2.03	332	292	620
- Insurance2	185	134	268
- Retail Retirement1	147	158	352
Operating profit from divisions	1,355	1,271	2,657
Group debt costs3	(108)	(120)	(230)
Group investment projects and expenses	(87)	(72)	(165)
Operating profit	1,160	1,079	2,262
Investment and other variances	2.06	207	244	233
Losses attributable to non-controlling interests	-	(3)	(7)
Adjusted profit before tax attributable to equity holders	1,367	1,320	2,488
Tax expense attributable to equity holders	4.04	(214)	(258)	(445)
Profit for the period	3.01	1,153	1,062	2,043
Total tax expense	3.01	287	339	589
Profit before tax	3.01	1,440	1,401	2,632
Profit attributable to equity holders	1,153	1,065	2,050
Earnings per share:
Basic (pence per share)4	2.07	19.28p	17.78p	34.19p
Diluted (pence per share)4	2.07	18.37p	16.96p	32.57p
1. From 1 January 2022, following changes to business unit responsibilities within the Executive Committee, the group's reportable segments have been updated to align with its five core businesses. Prior period comparatives have been restated to reflect this change in segmentation. Further details are provided in Note 2.08.
2. Insurance operating profit includes £46m (H1 21: £38m; FY 21: £(52)m) from US Insurance.
3. Group debt costs exclude interest on non-recourse financing.
4. All earnings per share calculations are based on profit attributable to equity holders of the company.

2.02 Release from Ops HY22

Changes in valuation assump- tions	Operating profit/ (loss) after tax	Operating profit/ (loss) before tax
New business surplus/ (strain)	Net release from operations
Release from operations1	Exper- ience variances	Non-cash items	Other2	Tax expense/ (credit)

For the six month period
to 30 June 2022	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
LGRI3	310	156	466	6	-	7	-	479	81	560
LGC	208	-	208	-	-	-	-	208	55	263
LGIM	162	-	162	-	-	-	-	162	38	200
Retail	345	(2)	343	(3)	18	(2)	(77)	279	53	332
- Insurance	219	(8)	211	2	18	(1)	(77)	153	32	185
- Retail Retirement3	126	6	132	(5)	-	(1)	-	126	21	147
Total from divisions	1,025	154	1,179	3	18	5	(77)	1,128	227	1,355
Group debt costs	(87)	-	(87)	-	-	-	-	(87)	(21)	(108)
Group investment projects and expenses	(47)	-	(47)	-	-	-	(34)	(81)	(6)	(87)
Total	891	154	1,045	3	18	5	(111)	960	200	1,160
1. Release from operations within Insurance includes £85m of dividends from US Insurance.
2. Other includes experience variances, changes in valuation assumptions (includes changes to assets allocation) and non-cash items relating to US Insurance.
3. From 1 January 2022, following changes to business unit responsibilities within the Executive Committee, the group's reportable segments have been updated to align with its five core businesses. Prior period comparatives have been restated to reflect this change in segmentation. Further details are provided in Note 2.08.

Release from operations for LGRI and the UK protection business within Retail represents the expected IFRS surplus generated in the period from the difference between the prudent assumptions underlying the IFRS liabilities and our best estimate of future experience. For workplace savings within Retail Retirement, the release from operations represents the expected annual management charges generated from the in-force business less expected expenses. The Insurance release from operations also includes dividends remitted from US Insurance and IFRS profit after tax for the Fintech business.
New business surplus/(strain) for LGRI and the UK protection business represents the initial profit or loss from writing new business. This includes the costs associated with acquiring new business and setting up prudent reserves, net of tax. Similarly for workplace savings, this includes the cost of acquiring new business in the year less the annual management charges generated by the assets under administration (AUA), net of tax. The new business surplus and release from operations for LGRI and Retail excludes any capital held in excess of the prudent reserves from the liability calculation.
LGRI and Retail Retirement's new business metrics are presented based on a single target long-term asset portfolio. At certain period ends, depending upon the quantum and timing of pension risk transfer (PRT) volumes, we may have sourced more or less of the high quality assets targeted to support that business. At period end, the profit impact of the difference between actual assets held (including alternative surplus assets where suitable) and the long-term asset mix is reflected in investment variance.
Net release from operations for LGRI and Retail is defined as release from operations plus new business surplus/(strain).
Release from operations and net release from operations for LGC and LGIM represents the operating profit (net of tax).
See Note 2.03 for more detail on experience variances, changes to valuation assumptions and non-cash items.
# All references to 'Operating profit' throughout this report represent 'Adjusted operating profit', an alternative performance measure defined in the glossary.

2.02 Release from Ops HY21

Changes in valuation assump- tions	Operating profit/ (loss) after tax	Operating profit/ (loss) before tax
New business surplus/ (strain)	Net release from operations
Release from operations1	Exper- ience variances	Non-cash items	Other2	Tax expense/ (credit)

For the six month period
to 30 June 2021	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
LGRI3	252	68	320	105	8	15	-	448	77	525
LGC	213	-	213	-	-	-	-	213	37	250
LGIM	163	-	163	-	-	-	-	163	41	204
Retail	262	23	285	16	1	1	(64)	239	53	292
- Insurance	151	8	159	4	1	4	(64)	104	30	134
- Retail Retirement3	111	15	126	12	-	(3)	-	135	23	158
Total from divisions	890	91	981	121	9	16	(64)	1,063	208	1,271
Group debt costs	(97)	-	(97)	-	-	-	-	(97)	(23)	(120)
Group investment projects and expenses	(30)	-	(30)	-	-	-	(31)	(61)	(11)	(72)
Total	763	91	854	121	9	16	(95)	905	174	1,079

2.02 Release from Ops FY21

Operating
New	Net	Changes in	Operating	profit/
Release	business	release	Exper-	valuation	profit/	Tax	(loss)
from	surplus/	from	ience	assump-	Non-cash	(loss) after	expense/	before
For the year ended	operations1	(strain)	operations	variances	tions	items	Other2	tax	(credit)	tax
31 December 2021	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
LGRI3	512	193	705	40	212	27	-	984	170	1,154
LGC	379	-	379	-	-	-	-	379	82	461
LGIM	342	-	342	-	-	-	-	342	80	422
Retail	463	54	517	28	121	2	(138)	530	90	620
- Insurance	236	27	263	14	82	6	(138)	227	41	268
- Retail Retirement3	227	27	254	14	39	(4)	-	303	49	352
Total from divisions	1,696	247	1,943	68	333	29	(138)	2,235	422	2,657
Group debt costs	(186)	-	(186)	-	-	-	-	(186)	(44)	(230)
Group investment projects and expenses	(69)	-	(69)	-	-	-	(68)	(137)	(28)	(165)
Total	1,441	247	1,688	68	333	29	(206)	1,912	350	2,262
1. Release from operations within Insurance includes £80m of dividends from US Insurance.
2. Other includes experience variances, changes in valuation assumptions and non-cash items relating to US Insurance.
3. From 1 January 2022, following changes to business unit responsibilities within the Executive Committee, the group's reportable segments have been updated to align with its five core businesses. Prior period comparatives have been restated to reflect this change in segmentation. Further details are provided in Note 2.08.

2.03 Analysis of op. profit

LGRI1	Retail1	LGRI1	Retail1	LGRI1	Retail1
6 months	6 months	6 months	6 months	Full year	Full year
2022	2022	2021	2021	2021	2021
£m	£m	£m	£m	£m	£m
Net release from operations	466	343	320	285	705	517
Experience variances
- Persistency	-	(1)	-	(6)	1	(5)
- Mortality/morbidity	13	13	27	18	24	29
- Expenses	(7)	(7)	(1)	(4)	6	(1)
- Project and development costs	-	(1)	(2)	(1)	(11)	(19)
- Other	-	(7)	81	9	20	24
Total experience variances	6	(3)	105	16	40	28
Changes in valuation assumptions
- Persistency	-	-	-	-	-	(5)
- Mortality/morbidity	-	18	-	-	153	46
- Expenses	-	-	-	-	-	(1)
- Other	-	-	8	1	59	81
Total changes in valuation assumptions	-	18	8	1	212	121
Movement in non-cash items2	7	(2)	15	1	27	2
Other3	-	(77)	-	(64)	-	(138)
Operating profit after tax	479	279	448	239	984	530
Tax expense	81	53	77	53	170	90
Operating profit before tax	560	332	525	292	1,154	620
1. From 1 January 2022, following changes to business unit responsibilities within the Executive Committee, the group's reportable segments have been updated to align with its five core businesses. Prior period comparatives have been restated to reflect this change in segmentation. Further details are provided in Note 2.08.
2. LGRI Movement in non-cash items is driven by the net effect of the capitalisation and unwind of future asset management profits on assets managed by LGIM, and is a function of new business volumes and movements in the main unit cost assumptions.
3. Other includes experience variances, changes in valuation assumptions (includes changes to assets allocation) and non-cash items relating to US Insurance.

2.04 LGC operating profit

6 months	6 months	Full year
2022	2021	2021
£m	£m	£m
Direct investments1	202	195	350
Traded investment portfolio including treasury assets2	61	55	111
Total LGC operating profit	263	250	461
1. Direct investments represents LGC's portfolio of assets across specialist commercial real estate, clean energy, housing and SME finance. Direct investments include operating profit in relation to CALA Homes of £98m (H1 21: £78m; FY 21: £132m).
2. The traded investment portfolio holds a diversified set of exposures across equities, fixed income, multi-asset funds and cash.

2.05 LGIM operating profit

6 months	6 months	Full year
2022	2021	2021
£m	£m	£m
Asset management revenue (excluding 3rd party market data)1	485	471	980
Asset management transactional revenue2	9	9	32
Asset management expenses (excluding 3rd party market data)1	(294)	(276)	(590)
Total LGIM operating profit	200	204	422
1. Asset management revenue and expenses exclude income and costs of £15m in relation to the provision of third party market data (H1 21: £18m; FY 21: £32m).
2. Transactional revenue from external clients includes execution fees, asset transition income, trigger fees, arrangement fees on property transactions and performance fees.

2.06 Investment and other var.

6 months	6 months	Full year
2022	2021	2021
£m	£m	£m
Investment variance related to protection liabilities1	617	230	111
Investment variance related to the traded investment portfolio and direct investments2	(308)	48	19
Other investment variance3	(83)	(23)	211
Investment variance	226	255	341
M&A related and other variances4	(19)	(11)	(108)
Total investment and other variances	207	244	233
1. The positive investment variance of £617m reflects the formulaic impact of an increase in UK and US government bond yields which have resulted in a higher discount rate used to calculate the group's protection liabilities.
2. The negative investment variance of £308m largely reflects volatile global equity market performance in the traded investment portfolio.
3. Other investment variance includes a negative variance in respect of the defined benefit pension scheme, reflecting the impact of the acquisition of annuity assets from LGRI and Retail Retirement, and the difference between the IAS 19 and annuity discount rates. This was partially offset by a positive variance from the UK annuity businesses, driven by good quality asset sourcing and improved cash flow matching within the portfolio.
4. M&A related and other variances includes gains and losses, expenses and intangible amortisation relating to acquisitions, disposals and restructuring as well as business start-up costs.
Investment variance includes differences between actual and long-term expected investment retuon traded and real assets (including direct investments), economic assumption changes caused by changes in market conditions or expectations (e.g. credit default and inflation), the impact of any difference between the actual allocated asset mix and the single target long-term asset mix on new pension risk transfer business, and the yield associated with assets held for future new pension risk transfer business from the valuation discount rate.
The long-term expected investment retuis based on opening economic assumptions applied to the assets under management at the start of the reporting year. The assumptions underlying the calculation of the expected returns for traded equity, commercial property and residential property are based on market consensus forecasts and long-term historic average returns expected to apply through the cycle. The long-term expected investment returns are:
6 months	6 months	Full year
2022	2021	2021
Equities	7%	7%	7%
Commercial property	5%	5%	5%
Residential property1	3.5%	RPI + 50bps	RPI + 50bps
1. In previous years the assumption RPI + 50bps was in line with average historical returns. Due to the current spike in inflation and in order to keep the rate aligned to average historical returns, it was updated to 3.5% in 2022.
Additionally, the LGC alternative asset portfolio comprises investments in housing, specialist commercial real estate, clean energy, and SME finance. The long-term expected investment retuis on average between 8% and 10%, in line with our stated investment objectives. Rates of retuspecific to each asset are determined at the point of underwriting and reviewed and updated annually. The expected investment retuincludes assumptions on appropriate discount rates and inflation as well as sector specific assumptions including retail and commercial property yields and power prices.

2.07 EPS - basic

After tax	Per share1	After tax	Per share1	After tax	Per share1
6 months	6 months	6 months	6 months	Full year	Full year
2022	2022	2021	2021	2021	2021
£m	p	£m	p	£m	p
Profit for the period attributable to equity holders	1,153	19.47	1,065	17.96	2,050	34.58
Less: coupon payable in respect of restricted Tier 1 convertible notes net of tax relief	(11)	(0.19)	(11)	(0.18)	(23)	(0.39)
Total basic earnings	1,142	19.28	1,054	17.78	2,027	34.19
1. Basic earnings per share is calculated by dividing profit after tax by the weighted average number of ordinary shares in issue during the period, excluding employee scheme treasury shares.

2.07 EPS - diluted

After tax	Weighted average number of shares	Per share1
For the six month period to 30 June 2022	£m	m	p
Profit for the period attributable to equity holders	1,153	5,922	19.47
Net shares under options allocable for no further consideration	-	46	(0.15)
Conversion of restricted Tier 1 notes	-	307	(0.95)
Total diluted earnings	1,153	6,275	18.37
After tax	Weighted average number of shares	Per share1
For the six month period to 30 June 2021	£m	m	p
Profit for the period attributable to equity holders	1,065	5,929	17.96
Net shares under options allocable for no further consideration	-	45	(0.14)
Conversion of restricted Tier 1 notes	-	307	(0.86)
Total diluted earnings	1,065	6,281	16.96
After tax	Weighted average number of shares	Per share1
For the year ended 31 December 2021	£m	m	p
Profit for the year attributable to equity holders	2,050	5,929	34.58
Net shares under options allocable for no further consideration	-	59	(0.34)
Conversion of restricted Tier 1 notes	-	307	(1.67)
Total diluted earnings	2,050	6,295	32.57
1. For diluted earnings per share, the weighted average number of ordinary shares in issue, excluding employee scheme treasury shares, is adjusted to assume conversion of all potential ordinary shares, such as share options granted to employees and conversion of restricted Tier 1 notes.

2.08 Seg. analysis - profit

(a) Profit/(loss) for the period
Group
expenses
Retail	and debt
LGRI1	LGC	LGIM	Retirement1	Insurance	costs	Total
For the six month period to 30 June 2022	£m	£m	£m	£m	£m	£m	£m
Operating profit/(loss)#	560	263	200	147	185	(195)	1,160
Investment and other variances	133	(308)	(7)	53	617	(281)	207
Losses attributable to non-controlling interests	-	-	-	-	-	-	-
Profit/(loss) before tax attributable to equity holders	693	(45)	193	200	802	(476)	1,367
Tax (expense)/credit attributable to equity holders	(88)	2	(39)	(24)	(162)	97	(214)
Profit/(loss) for the period	605	(43)	154	176	640	(379)	1,153
Group
expenses
Retail	and debt
LGRI1	LGC	LGIM	Retirement1	Insurance	costs	Total
For the six month period to 30 June 2021	£m	£m	£m	£m	£m	£m	£m
Operating profit/(loss)#	525	250	204	158	134	(192)	1,079
Investment and other variances	75	48	(7)	30	230	(132)	244
Losses attributable to non-controlling interests	-	-	-	-	-	(3)	(3)
Profit/(loss) before tax attributable to equity holders	600	298	197	188	364	(327)	1,320
Tax (expense)/credit attributable to equity holders	(110)	(54)	(44)	(35)	(91)	76	(258)
Profit/(loss) for the period	490	244	153	153	273	(251)	1,062
Group
expenses
Retail	and debt
LGRI1	LGC	LGIM	Retirement1	Insurance	costs	Total
For the year ended 31 December 2021	£m	£m	£m	£m	£m	£m	£m
Operating profit/(loss)#	1,154	461	422	352	268	(395)	2,262
Investment and other variances	193	19	(11)	49	111	(128)	233
Losses attributable to non-controlling interests	-	-	-	-	-	(7)	(7)
Profit/(loss) before tax attributable to equity holders	1,347	480	411	401	379	(530)	2,488
Tax (expense)/credit attributable to equity holders	(213)	(93)	(79)	(63)	(59)	62	(445)
Profit/(loss) for the year	1,134	387	332	338	320	(468)	2,043
1. From 1 January 2022, following changes to business unit responsibilities within the Executive Committee, the group's reportable segments have been updated to align with its five core businesses. Prior period comparatives have been restated to reflect this change in segmentation.
# All references to 'Operating profit' throughout this report represent 'Adjusted operating profit', an alternative performance measure defined in the glossary.

2.08 Seg. analysis - revenue

(i) Total revenue
6 months	6 months	Full year
2022	2021	2021
£m	£m	£m
Total income	(69,188)	14,898	45,450
Adjusted for:
Share of profit from associates and joint ventures, net of tax	(4)	(21)	(25)
Gain on disposal of subsidiaries, associates and joint ventures, and other operations	(10)	-	(149)
Total revenue	(69,202)	14,877	45,276

2.08 Seg. analysis - income

(ii) Total income
Retail	LGC and
LGRI1	LGIM2,3	Retirement1	Insurance	other4	Total
For the six month period to 30 June 2022	£m	£m	£m	£m	£m	£m
Internal income	-	92	-	-	(92)	-
External income	(6,845)	(61,289)	(2,688)	1,007	627	(69,188)
Total income	(6,845)	(61,197)	(2,688)	1,007	535	(69,188)
Retail	LGC and
LGRI1	LGIM2,3	Retirement1	Insurance	other4	Total
For the six month period to 30 June 2021	£m	£m	£m	£m	£m	£m
Internal income	-	80	-	-	(80)	-
External income	(20)	17,891	7	1,003	(3,983)	14,898
Total income	(20)	17,971	7	1,003	(4,063)	14,898
Retail	LGC and
LGRI1	LGIM2,3	Retirement1	Insurance	other4	Total
For the year ended 31 December 2021	£m	£m	£m	£m	£m	£m
Internal income	-	179	-	-	(179)	-
External income	4,842	35,738	1,117	2,029	1,724	45,450
Total income	4,842	35,917	1,117	2,029	1,545	45,450
1. From 1 January 2022, following changes to business unit responsibilities within the Executive Committee, the group's reportable segments have been updated to align with its five core businesses. Prior period comparatives have been restated to reflect this change in segmentation.
2. LGIM internal income relates to investment management services provided to other segments.
3. LGIM external income primarily includes fees from fund management and investment returns on unit linked funds.
4. LGC and other includes LGC income, intra-segmental eliminations and group consolidation adjustments.

2.08 Seg. analysis - fees

2.08 Segmental analysis (continued)
(b) Revenue (continued)
(iii) Fees from fund management and investment contracts
Retail	LGC and other2
LGIM	Retirement1	Total
For the six month period to 30 June 2022	£m	£m	£m	£m
Investment contracts	-	49	-	49
Investment management fees	495	-	(92)	403
Transaction fees	9	-	-	9
Total fees from fund management and investment contracts3	504	49	(92)	461
Retail	LGC and other2
LGIM	Retirement1	Total
For the six month period to 30 June 2021	£m	£m	£m	£m
Investment contracts	-	46	-	46
Investment management fees	488	-	(80)	408
Transaction fees	9	-	-	9
Total fees from fund management and investment contracts3	497	46	(80)	463
Retail	LGC and other2
LGIM	Retirement1	Total
For the year ended 31 December 2021	£m	£m	£m	£m
Investment contracts	-	97	-	97
Investment management fees	1,009	-	(179)	830
Transaction fees	32	-	-	32
Total fees from fund management and investment contracts3	1,041	97	(179)	959
1. From 1 January 2022, following changes to business unit responsibilities within the Executive Committee, the group's reportable segments have been updated to align with its five core businesses. Prior period comparatives have been restated to reflect this change in segmentation.
2. LGC and other includes LGC income, intra-segmental eliminations and group consolidation adjustments.
3. Fees from fund management and investment contracts are a component of Total revenue disclosed in Note 2.08 (b)(i).

2.08 Seg. analysis - other inc.

2.08 Segmental analysis (continued)
(b) Revenue (continued)
(iv) Other operational income from contracts with customers
Retail	LGC and other
Retirement1	Insurance	Total
For the six month period to 30 June 2022	£m	£m	£m	£m
House building	-	-	763	763
Professional services fees	4	41	-	45
Insurance broker	-	21	-	21
Total other operational income from contracts with customers2	4	62	763	829
Retail	LGC and other
Retirement1	Insurance	Total
For the six month period to 30 June 2021	£m	£m	£m	£m
House building	-	-	651	651
Professional services fees	1	49	-	50
Insurance broker	-	2	-	2
Total other operational income from contracts with customers2	1	51	651	703
Retail	LGC and other
Retirement1	Insurance	Total
For the year ended 31 December 2021	£m	£m	£m	£m
House building	-	-	1,314	1,314
Professional services fees	5	89	-	94
Insurance broker	-	11	-	11
Total other operational income from contracts with customers2	5	100	1,314	1,419
1. From 1 January 2022, following changes to business unit responsibilities within the Executive Committee, the group's reportable segments have been updated to align with its five core businesses. Prior period comparatives have been restated to reflect this change in segmentation.
2. Total other operational income from contracts with customers is a component of Total revenue disclosed in Note 2.08 (b)(i) and excludes the share of profit/loss from associates and joint ventures, and the gain on disposal of subsidiaries, associates and joint ventures, and other operations.

3.01 Consol. Income Statement

6 months	6 months	Full year
2022	2021	2021
For the six month period to 30 June 2022	Notes	£m	£m	£m
Income
Gross written premiums	6,612	4,263	10,375
Outward reinsurance premiums	(1,576)	(1,605)	(3,446)
Net change in provision for unearned premiums	8	35	42
Net premiums earned	5,044	2,693	6,971
Fees from fund management and investment contracts	461	463	959
Investment return	(75,536)	11,018	35,927
Other operational income	843	724	1,593
Total income	2.08	(69,188)	14,898	45,450
Expenses
Claims and change in insurance contract liabilities	(10,371)	540	7,353
Reinsurance recoveries	(295)	(1,313)	(2,968)
Net claims and change in insurance contract liabilities	(10,666)	(773)	4,385
Change in investment contract liabilities	(62,297)	12,232	34,206
Acquisition costs	416	436	825
Finance costs	145	157	294
Other expenses	1,774	1,445	3,108
Total expenses	(70,628)	13,497	42,818
Profit before tax	1,440	1,401	2,632
Tax expense attributable to policyholder returns	(73)	(81)	(144)
Profit before tax attributable to equity holders	1,367	1,320	2,488
Total tax expense	(287)	(339)	(589)
Tax expense attributable to policyholder returns	73	81	144
Tax expense attributable to equity holders	4.04	(214)	(258)	(445)
Profit for the period	1,153	1,062	2,043
Attributable to:
Non-controlling interests	-	(3)	(7)
Equity holders	1,153	1,065	2,050
Dividend distributions to equity holders during the period	4.02	792	754	1,063
Dividend distributions to equity holders proposed after the period end	4.02	324	309	790
p	p	p
Total basic earnings per share1	2.07	19.28	17.78	34.19
Total diluted earnings per share1	2.07	18.37	16.96	32.57
1. All earnings per share calculations are based on profit attributable to equity holders of the company.

3.02 Consol. SOCI

6 months	6 months	Full year
2022	2021	2021
For the six month period to 30 June 2022	£m	£m	£m
Profit for the period	1,153	1,062	2,043
Items that will not be reclassified subsequently to profit or loss
Actuarial remeasurements on defined benefit pension schemes	387	116	53
Tax (expense)/credit on actuarial remeasurements on defined benefit pension schemes	(97)	(20)	(7)
Total items that will not be reclassified subsequently to profit or loss	290	96	46
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of overseas operations	84	(11)	(11)
Movement in cross-currency hedge	5	6	20
Tax expense on movement in cross-currency hedge	(1)	(4)	(7)
Movement in financial investments designated as available-for-sale	3	(8)	(3)
Tax on movement in financial investments designated as available-for-sale	(1)	1	-
Total items that may be reclassified subsequently to profit or loss	90	(16)	(1)
Other comprehensive income after tax	380	80	45
Total comprehensive income for the period	1,533	1,142	2,088
Total comprehensive income/(expense) for the period attributable to:
Non-controlling interests	-	(3)	(7)
Equity holders	1,533	1,145	2,095

3.03 Consol. Balance Sheet

As at	As at	As at
30 Jun 2022	30 Jun 2021	31 Dec 2021
Notes	£m	£m	£m
Assets
Goodwill	71	68	68
Other intangible assets	406	377	365
Deferred acquisition costs	26	46	26
Investment in associates and joint ventures accounted for using the equity method	387	314	375
Property, plant and equipment	311	322	316
Investment property	4.03	10,976	9,080	10,150
Financial investments	4.03	462,329	519,762	538,374
Reinsurers' share of contract liabilities	6,040	6,947	7,180
Deferred tax assets	4.04	115	12	2
Current tax assets	699	612	670
Receivables and other assets	17,857	14,331	8,625
Cash and cash equivalents	24,774	16,397	16,487
Total assets	523,991	568,268	582,638
Equity
Share capital	4.05	149	149	149
Share premium	4.05	1,017	1,011	1,012
Employee scheme treasury shares	(138)	(90)	(99)
Capital redemption and other reserves	381	162	196
Retained earnings	9,775	8,620	9,228
Attributable to owners of the parent	11,184	9,852	10,486
Restricted Tier 1 convertible notes	4.06	495	495	495
Non-controlling interests	4.07	(36)	(34)	(38)
Total equity	11,643	10,313	10,943
Liabilities
Insurance contract liabilities	76,889	86,339	89,825
Investment contract liabilities	305,780	358,613	372,954
Core borrowings	4.08	4,356	4,542	4,256
Operational borrowings	4.09	1,182	1,138	932
Provisions	4.13	781	1,113	1,238
Deferred tax liabilities	4.04	407	277	251
Current tax liabilities	81	57	84
Payables and other financial liabilities	4.11	95,970	80,785	74,264
Other liabilities	894	640	925
Net asset value attributable to unit holders	26,008	24,451	26,966
Total liabilities	512,348	557,955	571,695
Total equity and liabilities	523,991	568,268	582,638

3.04 Consol. SOCIE HY22

Employee	Capital	Equity	Restricted
scheme	redemption	attributable	Tier 1	Non-
Share	Share	treasury	and other	Retained	to owners	convertible	controlling	Total
For the six month period to 30 June 2022	capital	premium	shares	reserves1	earnings	of the parent	notes	interests	equity
£m	£m	£m	£m	£m	£m	£m	£m	£m
As at 1 January 2022	149	1,012	(99)	196	9,228	10,486	495	(38)	10,943
Total comprehensive income for the period	-	-	-	90	1,443	1,533	-	-	1,533
Options exercised under share option schemes	-	5	-	-	-	5	-	-	5
Net movement in employee scheme treasury shares	-	-	(39)	(8)	10	(37)	-	-	(37)
Dividends	-	-	-	-	(792)	(792)	-	-	(792)
Coupon payable in respect of restricted Tier 1 convertible notes net of tax relief	-	-	-	-	(11)	(11)	-	-	(11)
Movement in third party interests	-	-	-	-	-	-	-	2	2
Currency translation differences	-	-	-	103	(103)	-	-	-	-
As at 30 June 2022	149	1,017	(138)	381	9,775	11,184	495	(36)	11,643
1. Capital redemption and other reserves as at 30 June 2022 include share-based payments £78m, foreign exchange £233m, capital redemption £17m, hedging £52m and available-for-sale reserves £1m.

3.04 Consol. SOCIE HY21

Employee	Capital	Equity	Restricted
scheme	redemption	attributable	Tier 1	Non-
Share	Share	treasury	and other	Retained	to owners	convertible	controlling	Total
For the six month period to 30 June 2021	capital	premium	shares	reserves1	earnings	of the parent	notes	interests	equity
£m	£m	£m	£m	£m	£m	£m	£m	£m
As at 1 January 2021	149	1,006	(75)	198	8,224	9,502	495	(31)	9,966
Total comprehensive income for the period	-	-	-	(16)	1,161	1,145	-	(3)	1,142
Options exercised under share option schemes	-	5	-	-	-	5	-	-	5
Net movement in employee scheme treasury shares	-	-	(15)	(15)	(5)	(35)	-	-	(35)
Dividends	-	-	-	-	(754)	(754)	-	-	(754)
Coupon payable in respect of restricted Tier 1 convertible notes net of tax relief	-	-	-	-	(11)	(11)	-	-	(11)
Currency translation differences	-	-	-	(5)	5	-	-	-	-
As at 30 June 2021	149	1,011	(90)	162	8,620	9,852	495	(34)	10,313
1. Capital redemption and other reserves as at 30 June 2021 include share-based payments £86m, foreign exchange £27m, capital redemption £17m, hedging £37m and available-for-sale reserves £(5)m.

3.04 Consol. SOCIE YE21

Employee	Capital	Equity	Restricted
scheme	redemption	attributable	Tier 1	Non-
Share	Share	treasury	and other	Retained	to owners	convertible	controlling	Total
For the year ended 31 December 2021	capital	premium	shares	reserves1	earnings	of the parent	notes	interests	equity
£m	£m	£m	£m	£m	£m	£m	£m	£m
As at 1 January 2021	149	1,006	(75)	198	8,224	9,502	495	(31)	9,966
Total comprehensive income for the year	-	-	-	(1)	2,096	2,095	-	(7)	2,088
Options exercised under share option schemes	-	6	-	-	-	6	-	-	6
Net movement in employee scheme treasury shares	-	-	(24)	(15)	8	(31)	-	-	(31)
Dividends	-	-	-	-	(1,063)	(1,063)	-	-	(1,063)
Coupon payable in respect of restricted Tier 1 convertible notes net of tax relief	-	-	-	-	(23)	(23)	-	-	(23)
Currency translation differences	-	-	-	14	(14)	-	-	-	-
As at 31 December 2021	149	1,012	(99)	196	9,228	10,486	495	(38)	10,943
1. Capital redemption and other reserves as at 31 December 2021 include share-based payments £86m, foreign exchange £46m, capital redemption £17m, hedging £48m and available-for-sale reserves £(1)m.

3.05 Consol. Cash Flow

6 months	6 months	Full year
2022	2021	2021
For the six month period to 30 June 2022	Notes	£m	£m	£m
Cash flows from operating activities
Profit for the period	1,153	1,062	2,043
Adjustments for non cash movements in net profit for the period
Net losses/(gains) on financial investments and investment property	80,187	(5,227)	(26,062)
Investment income	(4,651)	(5,790)	(9,865)
Interest expense	145	157	294
Tax expense	287	339	589
Other adjustments	88	44	137
Net decrease/(increase) in operational assets
Investments held for trading or designated as fair value through profit or loss	14,200	5,804	4,616
Investments designated as available-for-sale	(3)	15	(21)
Other assets	(8,086)	(4,931)	139
Net (decrease)/increase in operational liabilities
Insurance contracts	(13,621)	(2,615)	726
Investment contracts	(67,182)	15,069	29,409
Other liabilities	2,481	(10,114)	(11,161)
Cash utilised in operations	4,998	(6,187)	(9,156)
Interest paid	(139)	(160)	(301)
Interest received	1,808	3,368	5,060
Rent received	185	184	373
Tax paid1	(376)	(276)	(564)
Dividends received	2,491	2,307	4,419
Net cash flows from operations	8,967	(764)	(169)
Cash flows from investing activities
Acquisition of plant, equipment, intangibles and other assets	(60)	(137)	(205)
Disposal of plant, equipment, intangibles and other assets	-	2	-
Acquisition of operations, net of cash acquired	4.16	(2)	-	-
Disposal of subsidiaries and other operations, net of cash transferred	-	-	217
Investment in joint ventures and associates	(34)	(2)	(56)
Disposal of joint ventures and associates	40	-	177
Net cash flows (utilised)/generated from investing activities	(56)	(137)	133
Cash flows from financing activities
Dividend distributions to ordinary equity holders during the period	4.02	(792)	(754)	(1,063)
Coupon payment in respect of restricted Tier 1 convertible notes, gross of tax	4.06	(14)	(14)	(28)
Options exercised under share option schemes	4.05	5	5	6
Treasury shares purchased for employee share schemes	(50)	(24)	(34)
Payment of lease liabilities	(18)	(17)	(37)
Proceeds from borrowings	4.1	385	252	449
Repayment of borrowings	4.1	(210)	(162)	(798)
Net cash flows utilised in financing activities	(694)	(714)	(1,505)
Net increase/(decrease) in cash and cash equivalents	8,217	(1,615)	(1,541)
Exchange gains/(losses) on cash and cash equivalents	70	(8)	8
Cash and cash equivalents at 1 January	16,487	18,020	18,020
Cash and cash equivalents at 30 June/31 December	24,774	16,397	16,487
1. Tax comprises UK corporation tax paid of £223m (H1 21: £155m; FY 21: £368m), withholding tax of £147m (H1 21: £118m; FY 21: £188m) and overseas corporate tax of £6m (H1 21: £3m; FY 21: £8m).

4.02 Dividends

Dividend	Per share1	Dividend	Per share1	Dividend	Per share1
6 months	6 months	6 months	6 months	Full year	Full year
2022	2022	2021	2021	2021	2021
£m	p	£m	p	£m	p
Ordinary dividends paid and charged to equity in the period:
- Final 2020 dividend paid in June 2021	-	-	754	12.64	754	12.64
- Interim 2021 dividend paid in September 2021	-	-	-	-	309	5.18
- Final 2021 dividend paid in June 2022	792	13.27	-	-	-	-
Total dividends2	792	13.27	754	12.64	1,063	17.82
1. The dividend per share calculation is based on the number of equity shares registered on the ex-dividend date.
2. The dividend proposed at 31 December 2021 was £790m based on the current number of eligible equity shares on that date.
Subsequent to 30 June 2022, the directors declared an interim dividend of 5.44 pence per ordinary share. This dividend will be paid on 26 September 2022. It will be accounted for as an appropriation of retained earnings in the year ended 31 December 2022 and is not included as a liability in the Consolidated Balance Sheet as at 30 June 2022.

4.03 Total fin. investments

30 Jun	30 Jun	31 Dec
2022	2021	2021
£m	£m	£m
Equities1	182,847	207,803	213,049
Debt securities2,3	237,976	278,858	296,930
Derivative assets4	28,017	15,449	16,792
Loans5	13,489	17,652	11,603
Financial investments	462,329	519,762	538,374
Investment property	10,976	9,080	10,150
Total financial investments and investment property	473,305	528,842	548,524
1. Equity securities include investments in unit trusts of £17,572m (30 June 2021: £15,681m; 31 December 2021: £18,248m).
2. Debt securities include accrued interest of £1,497m (30 June 2021: £1,389m; 31 December 2021: £1,420m).
3. A detailed analysis of debt securities to which shareholders are directly exposed is disclosed in Note 7.03.
4. Derivatives are used for efficient portfolio management, especially the use of interest rate swaps, inflation swaps, credit default swaps and foreign exchange forward contracts for asset and liability management. Derivative assets are shown gross of derivative liabilities of £34,044m (30 June 2021: £18,249m; 31 December 2021: £15,718m).
5. Loans include £101m (30 June 2021: £149m; 31 December 2021: £92m) of loans valued at amortised cost.

4.03 FV fin. investments HY22

4.03 Financial investments and Investment property (continued)
(a) Fair value hierarchy (continued)

Total	Level 1	Level 2	Level 3
For the six month period to 30 June 2022	£m	£m	£m	£m
Shareholder1
Equity securities	3,492	1,995	22	1,475
Debt securities	76,814	27,622	27,265	21,927
Derivative assets	25,071	6	25,065	-
Loans at fair value2	1,701	-	1,701	-
Investment property	6,156	-	-	6,156
Total Shareholder	113,234	29,623	54,053	29,558
Unit linked
Equity securities	179,355	178,691	25	639
Debt securities	161,162	129,689	30,836	637
Derivative assets	2,946	125	2,821	-
Loans at fair value	11,687	-	11,687	-
Investment property	4,820	-	-	4,820
Total Unit linked	359,970	308,505	45,369	6,096
Total financial investments and investment property at fair value2	473,204	338,128	99,422	35,654

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4.03 FV fin. investments HY21


Total	Level 1	Level 2	Level 3
For the six month period to 30 June 2021	£m	£m	£m	£m
Shareholder1
Equity securities	3,088	1,821	4	1,263
Debt securities	82,699	34,034	26,375	22,290
Derivative assets	14,019	2	14,017	-
Loans at fair value2	4,152	-	4,152	-
Investment property	5,103	-	-	5,103
Total Shareholder	109,061	35,857	44,548	28,656
Unit linked
Equity securities	204,715	204,055	23	637
Debt securities	196,159	146,780	49,029	350
Derivative assets	1,430	89	1,341	-
Loans at fair value	13,351	-	13,351	-
Investment property	3,977	-	-	3,977
Total Unit linked	419,632	350,924	63,744	4,964
Total financial investments and investment property at fair value2	528,693	386,781	108,292	33,620
1. All non-unit linked assets are classified as Shareholder assets. Shareholders of the group are directly exposed to market and credit risk on those assets including those backing the non-profit-non-unit linked business.
2. The above tables exclude loans (including accrued interest) of £101m, which are held at amortised cost (30 June 2021: £149m).

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4.03 FV fin. investments YE21

4.03 Financial investments and investment property (continued)
(a) Fair value hierarchy (continued)
Total	Level 1	Level 2	Level 3
For the year ended 31 December 2021	£m	£m	£m	£m
Shareholder1
Equity securities	3,185	1,854	63	1,268
Debt securities	86,803	32,593	29,887	24,323
Derivative assets	13,203	9	13,194	-
Loans at fair value2	2,240	-	2,240	-
Investment property	5,710	-	-	5,710
Total Shareholder	111,141	34,456	45,384	31,301
Unit linked
Equity securities	209,864	209,119	25	720
Debt securities	210,127	170,838	38,726	563
Derivative assets	3,589	90	3,499	-
Loans at fair value	9,271	-	9,271	-
Investment property	4,440	-	-	4,440
Total Unit linked	437,291	380,047	51,521	5,723
Total financial investments and investment property at fair value2	548,432	414,503	96,905	37,024
1. All non-unit linked assets are classified as Shareholder assets. Shareholders of the group are directly exposed to market and credit risk on those assets including those backing the non-profit-non-unit linked business.
2. This table excludes loans (including accrued interest) of £92m, which are held at amortised cost.

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4.03 Inv. property by sector

The below table breaks down the investment property by sector.
30 Jun	30 Jun	31 Dec
2022	2021	2021
£m	£m	£m
Retail	951	962	1,025
Leisure	505	453	482
Distribution	1,613	1,277	1,552
Office space	4,688	3,832	4,223
Industrial and other commercial	2,005	1,803	1,767
Accommodation	1,214	753	1,101
Total investment property	10,976	9,080	10,150

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4.03 Fin. investments lev. 3 FV

4.03 Financial investments and investment property (continued)
(b) Level 3 assets measured at fair value (continued)
Other	Other
Equity	financial	Investment	Equity	financial	Investment
securities	investments	property	Total	securities	investments	property	Total
2022	2022	2022	2022	2021	2021	2021	2021
£m	£m	£m	£m	£m	£m	£m	£m
As at 1 January	1,988	24,886	10,150	37,024	1,801	21,957	8,475	32,233
Total gains/(losses) for the period
- in other comprehensive income	-	3	-	3	-	(8)	-	(8)
- realised gains/(losses)1	6	(5)	30	31	1	(9)	-	(8)
- unrealised gains/(losses)1	144	(3,643)	571	(2,928)	97	(422)	249	(76)
Purchases/Additions	179	2,110	330	2,619	90	2,007	449	2,546
Sales/Disposals	(266)	(1,105)	(105)	(1,476)	(59)	(821)	(93)	(973)
Transfers into Level 3	67	-	-	67	-	8	-	8
Transfers out of Level 3	(10)	-	-	(10)	(30)	(44)	-	(74)
Foreign exchange rate movements	6	318	-	324	-	(28)	-	(28)
As at 30 June	2,114	22,564	10,976	35,654	1,900	22,640	9,080	33,620

Other
Equity	financial	Investment
securities	investments	property	Total
2021	2021	2021	2021
£m	£m	£m	£m
As at 1 January	1,801	21,957	8,475	32,233
Total gains/(losses) for the year
- in other comprehensive income	-	(3)	-	(3)
- realised gains/(losses)1	31	12	(4)	39
- unrealised gains or (losses)1	208	(87)	1,028	1,149
Purchases/Additions	130	5,429	985	6,544
Sales/Disposals	(153)	(2,351)	(334)	(2,838)
Transfers into Level 3	2	10	-	12
Transfers out of Level 3	(31)	(112)	-	(143)
Foreign exchange rate movements	-	31	-	31
As at 31 December	1,988	24,886	10,150	37,024
1. Realised and unrealised gains/(losses) are recognised in investment retuin the Consolidated Income Statement.

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4.03 Change in assumptions

Sensitivities
Fair value 30 June 2022 £m	Positive impact £m	Negative impact £m
Lifetime mortgages	5,758	216	(216)
Private credit portfolios	15,127	821	(821)
Investment property	10,976	915	(1,075)
Other investments1	3,793	339	(274)
Total Level 3 assets	35,654	2,291	(2,386)
1. Other investments include Level 3 equity securities, income strip assets and other traded debt securities which are Level 3.

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4.04 IFRS -Tax charge

(a) Tax expense in the Consolidated Income Statement
The tax expense attributable to equity holders differs from the tax calculated at the standard UK corporation tax rate as follows:
6 months	6 months	Full year
2022	2021	2021
£m	£m	£m
Profit before tax attributable to equity holders	1,367	1,320	2,488
Tax calculated at 19.00%	260	251	473
Adjusted for the effects of:
Recurring reconciling items:
(Lower)/higher rate of tax on profits taxed overseas1	(32)	(32)	(104)
Non-deductible expenses	-	4	6
Differences between taxable and accounting investment gains	(6)	(9)	(13)
Foreign tax	1	-	-
Unrecognised tax losses	1	-	1
Other	3	-	-
Non-recurring reconciling items:
Adjustments in respect of prior years2	(1)	12	24
Impact of the revaluation of deferred tax balances3	(12)	32	58
Tax expense attributable to equity holders	214	258	445
Equity holders' effective tax rate	15.7%	19.5%	17.9%
1. The lower rate of tax on overseas profits is principally driven by the 0% rate of taxation arising in our Bermudan reinsurance company, which provides the group with regulatory capital flexibility for both our PRT business and our US term insurance business. This also includes the impact of our US operations which are taxed at 21%.
2. Adjustments in respect of prior years relate to revisions of prior estimates.
3. The Finance Act 2021 increased the rate of corporation tax from 19% to 25% from 1 April 2023. The prevailing rate of UK corporation tax for the year remained at 19%. The future enacted tax rate of 25% has been used in the calculation of UK deferred tax assets and liabilities in respect of temporary differences arising in the period, being the rate of corporation tax that is expected to apply when the majority of those deferred tax balances reverse.

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4.04 IFRS - Deferred tax

(b) Deferred tax
30 Jun 2022	30 Jun 2021	31 Dec 2021
Deferred tax (liabilities)/assets	£m	£m	£m
Overseas deferred acquisition expenses	110	88	95
Difference between the tax and accounting value of insurance contracts	(901)	(652)	(695)
- UK	(198)	(231)	(269)
- Overseas	(703)	(421)	(426)
Realised and unrealised gains on investments1	79	(22)	(83)
Excess of depreciation over capital allowances	20	23	22
Excess expenses	-	1	-
Accounting provisions and other	32	(37)	55
Trading losses2	410	320	348
Pension fund deficit	(42)	15	9
Acquired intangibles	-	(1)	-
Net deferred tax liabilities	(292)	(265)	(249)

Analysed by:
- Deferred tax assets1
115	12	2
- UK deferred tax liabilities	(218)	(209)	(215)
- Overseas deferred tax liabilities2	(189)	(68)	(36)
Net deferred tax liabilities	(292)	(265)	(249)
1. The deferred tax asset represents £113m of US unrealised losses on investments (H1 21: £nil; FY 21: £nil) and £2m of UK restricted losses (H1 21: £12m; FY 21: £2m) that are not capable of being offset against other deferred tax liabilities or future trading profits.
2. Trading losses include UK trade and US operating losses of £3m (H1 21: £12m; FY 21: £2m) and £407m (H1 21: £308m; FY 21: £346m) respectively. Overseas net deferred tax liabilities is wholly comprised of US balances as at 30 June 2022 and includes the US deferred tax asset. The losses are not time restricted, and we expect to recover them over a period of 15 to 20 years, commensurate with the lifecycle of the underlying insurance contracts. In reaching this conclusion, we have considered past results, the different basis under which US companies are taxed, temporary differences that are expected to generate future profits against which the deferred tax can be offset, management actions, and future profit forecasts. The recoverability of deferred tax assets is routinely reviewed by management.

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4.05 Share cap. and share prem

Number of
Authorised share capital	shares	£m
At 30 June 2022, 30 June 2021 and 31 December 2021: ordinary shares of 2.5p each	9,200,000,000	230
Share	Share
Number of	capital	premium
Issued share capital, fully paid	shares	£m	£m
As at 1 January 2022	5,970,415,817	149	1,012
Options exercised under share option schemes	2,162,898	-	5
As at 30 June 2022	5,972,578,715	149	1,017
Share	Share
Number of	capital	premium
Issued share capital, fully paid	shares	£m	£m
As at 1 January 2021	5,967,358,713	149	1,006
Options exercised under share option schemes	2,500,221	-	5
As at 30 June 2021	5,969,858,934	149	1,011
Options exercised under share option schemes	556,883	-	1
As at 31 December 2021	5,970,415,817	149	1,012
There is one class of ordinary shares of 2.5p each. All shares issued carry equal voting rights.
The holders of the company's ordinary shares are entitled to receive dividends as declared and are entitled to one vote per share at shareholder meetings of the company.

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4.08 Core borrowings

Carrying	Carrying	Carrying
amount	Fair value	amount	Fair value	amount	Fair value
30 Jun	30 Jun	30 Jun	30 Jun	31 Dec	31 Dec
2022	2022	2021	2021	2021	2021
£m	£m	£m	£m	£m	£m
Subordinated borrowings
10% Sterling subordinated notes 20411	-	-	313	315	-	-
5.5% Sterling subordinated notes 2064	590	546	589	771	590	776
5.375% Sterling subordinated notes 2045	604	610	604	699	604	673
5.25% US Dollar subordinated notes 2047	707	690	621	703	635	694
5.55% US Dollar subordinated notes 2052	414	416	364	413	373	428
5.125% Sterling subordinated notes 2048	400	391	400	478	400	461
3.75% Sterling subordinated notes 2049	598	523	598	659	598	632
4.5% Sterling subordinated notes 2050	500	456	500	582	500	558
Client fund holdings of group debt2	(50)	(46)	(41)	(49)	(44)	(51)
Total subordinated borrowings	3,763	3,586	3,948	4,571	3,656	4,171
Senior borrowings
Sterling medium term notes 2031-2041	602	707	603	866	609	846
Client fund holdings of group debt2	(9)	(10)	(9)	(12)	(9)	(11)
Total senior borrowings	593	697	594	854	600	835
Total core borrowings	4,356	4,283	4,542	5,425	4,256	5,006
1. These notes were redeemed in full on 23 July 2021.
2. £59m (30 June 2021: £50m; 31 December 2021: £53m) of the group's subordinated and senior borrowings are held by Legal & General customers through unit linked products. These borrowings are shown as a deduction from total core borrowings in the table above.
The presented fair values of the group's core borrowings reflect quoted prices in active markets and they have been classified as Level 1 in the fair value hierarchy.

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4.09 Operational borrowings

Carrying	Carrying	Carrying
amount	Fair value	amount	Fair value	amount	Fair value
30 Jun	30 Jun	30 Jun	30 Jun	31 Dec	31 Dec
2022	2022	2021	2021	2021	2021
£m	£m	£m	£m	£m	£m
Euro Commercial Paper	50	50	50	50	50	50
Non-recourse borrowings	1,004	1,004	1,064	1,064	874	874
Bank loans and overdrafts	91	91	2	2	-	-
Operational borrowings1	1,145	1,145	1,116	1,116	924	924
1. Unit linked borrowings with a carrying value of £37m (30 June 2021: £22m; 31 December 2021: £8m) are excluded from the analysis above as the risk is retained by policyholders. Operational borrowings including unit linked borrowings are £1,182m (30 June 2021: £1,138m; 31 December 2021: £932m).

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4.10 Movement in borrowings

4.10 Movement in borrowings
30 Jun	30 Jun	31 Dec
2022	2021	2021
£m	£m	£m
As at 1 January	5,188	5,613	5,613
Cash movements:
- Proceeds from borrowings	265	269	503
- Repayment of borrowings	(210)	(162)	(798)
- Net increase/(decrease) in bank loans and overdrafts	120	(17)	(54)

Non-cash movements:
- Amortisation	1	1	3
- Foreign exchange rate movements	184	(19)	10
- Other	(10)	(5)	(89)
Core and operational borrowings	5,538	5,680	5,188

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4.11 Payables and other fin.

30 Jun 2022	30 Jun 2021	31 Dec 2021
£m	£m	£m
Derivative liabilities	34,044	18,249	15,718
Repurchase agreements1	47,103	47,703	46,331
Other financial liabilities2	14,823	14,833	12,215
Total payables and other financial liabilities	95,970	80,785	74,264
1. The repurchase agreements are presented gross, however they and their related assets (included within debt securities) are subject to master netting arrangements. The significant majority of the repurchase agreements are unit linked.
2. Other financial liabilities includes trail commission, lease liabilities, FX spots and the value of short positions taken out to cover reverse repurchase agreements. The value of short positions as at 30 June 2022 was £4,779m (30 June 2021: £4,320m; 31 December 2021: £5,418m).
Fair value hierarchy
Amortised
Total	Level 1	Level 2	Level 3	cost1
As at 30 June 2022	£m	£m	£m	£m	£m
Derivative liabilities	34,044	291	33,713	40	-
Repurchase agreements	47,103	-	47,103	-	-
Other financial liabilities	14,823	4,815	81	-	9,927
Total payables and other financial liabilities	95,970	5,106	80,897	40	9,927
Amortised
Total	Level 1	Level 2	Level 3	cost1
As at 30 June 2021	£m	£m	£m	£m	£m
Derivative liabilities	18,249	397	17,780	72	-
Repurchase agreements	47,703	-	47,703	-	-
Other financial liabilities	14,833	5,484	15	10	9,324
Total payables and other financial liabilities	80,785	5,881	65,498	82	9,324
Amortised
Total	Level 1	Level 2	Level 3	cost1
As at 31 December 2021	£m	£m	£m	£m	£m
Derivative liabilities	15,718	331	15,316	71	-
Repurchase agreements	46,331	-	46,331	-	-
Other financial liabilities	12,215	5,438	55	-	6,722
Total payables and other financial liabilities	74,264	5,769	61,702	71	6,722
1. The carrying value of payables and other financial liabilities at amortised cost approximates its fair value.

Significant transfers between levels There have been no significant transfers of liabilities between Levels 1, 2 and 3 for the period ended 30 June 2022 (30 June 2021 and 31 December 2021: no significant transfers).

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4.12 Foreign exchange rates

Principal rates of exchange used for translation are:
Period end exchange rates	30 Jun 2022	30 Jun 2021	31 Dec 2021
United States dollar	1.22	1.38	1.35
Euro	1.16	1.17	1.19
6 months	6 months	Full year
Average exchange rates	2022	2021	2021
United States dollar	1.30	1.39	1.38
Euro	1.19	1.15	1.16

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4.13 Provisions

30 Jun 2022	30 Jun 2021	31 Dec 2021
Note	£m	£m	£m
Other provisions	4.13 (a)	182	108	213
Retirement benefit obligations	4.13 (b)	599	1,005	1,025
Total provisions	781	1,113	1,238

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4.15 Related party transactions

4.15 Related party transactions
(i) Key management personnel transactions and compensation
There were no material transactions between key management and the Legal & General group of companies during the period. All transactions between the group and its key management are on commercial terms which are no more favourable than those available to employees in general. Contributions to the post-employment defined benefit plans were £51m (30 June 2021: £52m; 31 December 2021: £109m) for all employees.
At 30 June 2022, 30 June 2021 and 31 December 2021 there were no loans outstanding to officers of the company.

The aggregate compensation for key management personnel, including executive and non-executive directors, is as follows:
6 months	6 months	Full year
2022	2021	2021
£m	£m	£m
Salaries	3	3	10
Share-based incentive awards	5	5	5
Key management personnel compensation	8	8	15

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5.01 LGIM total AUM

5.01 LGIM total assets under management1 (AUM)
Active	Multi	Real	Total
Index	strategies	asset	Solutions2	assets	AUM
For the six month period to 30 June 2022	£bn	£bn	£bn	£bn	£bn	£bn
As at 1 January 2022	502.4	198.8	78.0	605.1	37.2	1,421.5
External inflows3	63.2	7.0	6.8	21.3	1.4	99.7
External outflows3	(38.2)	(4.2)	(3.7)	(12.5)	(1.1)	(59.7)
Overlay net flows	-	-	-	25.6	-	25.6
External net flows4	25.0	2.8	3.1	34.4	0.3	65.6
PRT transfers5	-	-	-	(0.4)	-	(0.4)
Internal net flows6	(0.4)	0.2	-	(0.7)	0.4	(0.5)
Total net flows	24.6	3.0	3.1	33.3	0.7	64.7
Market movements	(57.8)	(25.2)	(8.0)	(102.4)	(1.9)	(195.3)
Other movements7	0.4	1.6	-	(3.2)	-	(1.2)
As at 30 June 2022	469.6	178.2	73.1	532.8	36.0	1,289.7
Assets attributable to:
External	1,190.7
Internal	99.0
Active	Multi	Real	Total
Index	strategies	asset	Solutions2	assets	AUM
For the six month period to 30 June 2021	£bn	£bn	£bn	£bn	£bn	£bn
As at 1 January 2021	429.9	193.6	65.7	557.2	32.5	1,278.9
External inflows3	47.8	10.0	4.9	20.2	0.6	83.5
External outflows3	(43.1)	(7.7)	(3.1)	(8.0)	(0.8)	(62.7)
Overlay net flows	-	-	-	6.6	-	6.6
External net flows4	4.7	2.3	1.8	18.8	(0.2)	27.4
PRT transfers5	(0.4)	(0.5)	-	(2.8)	-	(3.7)
Internal net flows6	(0.3)	(2.3)	0.1	(0.2)	1.0	(1.7)
Total net flows	4.0	(0.5)	1.9	15.8	0.8	22.0
Market movements	37.9	(4.3)	4.2	(19.2)	0.4	19.0
Other movements7	(0.4)	1.3	-	6.0	-	6.9
As at 30 June 2021	471.4	190.1	71.8	559.8	33.7	1,326.8
Assets attributable to:
External	1,213.6
Internal	113.2
1. Assets under management (AUM) includes assets on our Investment Only Platform that are managed by third parties, on which fees are earned.
2. Solutions include liability driven investments and £386.9bn (30 June 2021: £345.3bn) of derivative notionals associated with the Solutions business.
3. External inflows and outflows include £2.3bn (30 June 2021: £3.3bn) of external investments and £2.0bn (30 June 2021: £1.2bn) of redemptions in the ETF business.
4. External net flows exclude movements in short-term Solutions assets, as their maturity dates are determined by client agreements and are subject to a higher degree of variability. The total value of these assets at 30 June 2022 was £68.8bn (30 June 2021: £51.5bn).
5. PRT transfers reflect UK defined benefit pension scheme buy-outs to LGRI.
6. Internal net flows includes legacy assets from the Mature Savings business sold to ReAssure in 2020.
7. Other movements include movements of external holdings in money market funds, other cash mandates and short-term solutions assets.

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5.01 LGIM total AUM YE21

5.01 LGIM total assets under management1 (AUM) (continued)
Active	Multi	Real	Total
Index	strategies	asset	Solutions2	assets	AUM
For the year ended 31 December 2021	£bn	£bn	£bn	£bn	£bn	£bn
As at 1 January 2021	429.9	193.6	65.7	557.2	32.5	1,278.9
External inflows3	99.4	18.7	15.1	34.4	1.7	169.3
External outflows3	(94.5)	(15.8)	(8.1)	(25.5)	(1.8)	(145.7)
Overlay net flows	-	-	-	11.0	-	11.0
External net flows4	4.9	2.9	7.0	19.9	(0.1)	34.6
PRT transfers5	(0.6)	(0.7)	-	(2.9)	-	(4.2)
Internal net flows6	(1.0)	(1.8)	0.2	(1.5)	2.0	(2.1)
Total net flows	3.3	0.4	7.2	15.5	1.9	28.3
Market movements	68.7	1.8	5.1	8.6	2.8	87.0
Other movements7	0.5	3.0	-	23.8	-	27.3
As at 31 December 2021	502.4	198.8	78.0	605.1	37.2	1,421.5
Assets attributable to:
External	1,306.3
Internal	115.2
1. Assets under management (AUM) includes assets on our Investment Only Platform, that are managed by third parties, on which fees are earned.
2. Solutions include liability driven investments and £383.2bn of derivative notionals associated with the Solutions business.
3. External inflows and outflows include £5.5bn of external investments and £3.0bn of redemptions in the ETF business.
4. External net flows exclude movements in short-term Solutions assets, as their maturity dates are determined by client agreements and are subject to a higher degree of variability. The total value of these assets at 31 December 2021 was £71.2bn.
5. PRT transfers reflect UK defined benefit pension scheme buy-outs to LGRI.
6. Internal net flows include flows in legacy assets from the Mature Savings business sold to ReAssure in 2020.
7. Other movements include movements of external holdings in money market funds, other cash mandates and short-term solutions assets.

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5.02 LGIM AUM net flows

5.02 LGIM total external assets under management and net flows
Assets under management at	Net flows for the six months ended1
30 Jun	30 Jun	31 Dec	30 Jun	30 Jun	31 Dec
2022	2021	2021	2022	2021	2021
£bn	£bn	£bn	£bn	£bn	£bn
International2	377.1	344.8	377.3	34.5	15.0	14.5
UK Institutional
- Defined contribution	129.4	125.5	137.7	6.9	4.4	5.0
- Defined benefit	630.3	689.6	733.3	22.5	4.6	(13.9)
Wholesale3	45.5	45.5	49.1	1.4	1.3	1.2
ETF4	8.4	8.2	8.9	0.3	2.1	0.4
Total external	1,190.7	1,213.6	1,306.3	65.6	27.4	7.2
1. External net flows exclude movements in short-term solutions assets, with maturity as determined by client agreements and are subject to a higher degree of variability.
2. International assets are shown on the basis of client domicile. Total International AUM including assets managed internationally on behalf of UK clients amounted to £468bn as at 30 June 2022 (30 June 2021: £434bn; 31 December 2021: £479bn).
3. Wholesale represents assets from the Retail Intermediary business and £0.3bn of assets from Personal Investing customers that did not migrate to Fidelity International Limited.
4. ETF reflects external AUM and flows invested on the platform. Total AUM managed on the platform is £9.9bn ($12.0bn) in H1 22 (H1 21: £9.4bn ($13.0bn); FY 21: £10.1bn ($13.7bn)) and flows of £0.6bn ($0.8bn) in H1 22 (H1 21: £2.5bn ($3.4bn); FY 21: £2.9bn ($3.9bn)) which include internal investment from other LGIM asset classes.

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5.03 Rec. of AUM to BS

5.03 Reconciliation of assets under management to Consolidated Balance Sheet financial investments, investment property and cash and cash equivalents
30 Jun 2022	30 Jun 2021	31 Dec 2021
£bn	£bn	£bn
Assets under management	1,290	1,327	1,421
Derivative notionals1	(387)	(351)	(383)
Third party assets2	(429)	(441)	(480)
Other3	24	10	7
Financial investments, investment property and cash and cash equivalents	498	545	565
1. Derivative notionals are included in the assets under management measure but are not for IFRS reporting and are thus removed.
2. Third party assets are those that LGIM manage on behalf of others which are not included on the group's Consolidated Balance Sheet.
3. Other includes assets that are managed by third parties on behalf of the group, other assets and liabilities related to financial investments, derivative assets and pooled funds.

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5.04 LGIM total AUA

5.04 Assets under administration
Workplace1	Annuities2	Workplace	Annuities	Workplace	Annuities
30 Jun 2022	30 Jun 2022	30 Jun 2021	30 Jun 2021	31 Dec 2021	31 Dec 2021
£bn	£bn	£bn	£bn	£bn	£bn
As at 1 January	65.7	89.9	50.8	87.0	50.8	87.0
Gross inflows	6.1	5.0	7.5	3.7	11.9	8.7
Gross outflows	(1.8)	-	(1.5)	-	(3.4)	-
Payments to pensioners	-	(2.4)	-	(2.2)	-	(4.6)
Net flows	4.3	2.6	6.0	1.5	8.5	4.1
Market and other movements	(6.9)	(13.7)	3.4	(2.7)	6.4	(1.2)
As at 30 June/31 December	63.1	78.8	60.2	85.8	65.7	89.9
1. Workplace assets under administration as at 30 June 2022 includes £63.0bn (30 June 2021: £60.1bn; 31 December 2021: £65.6bn) of assets under management included in Note 5.01.
2. Annuities assets under administration as at 30 June 2022 includes £69.9bn (30 June 2021: £77.3bn; 31 December 2021: £80.6bn) of assets under management included in Note 5.01.

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5.05 LGRI new business

5.05 LGRI new business
6 months	6 months	6 months	Full year
30 Jun	30 Jun	31 Dec	31 Dec
2022	2021	2021	2021
£m	£m	£m	£m
Pension risk transfer
- UK1	3,715	2,965	3,275	6,240
- US	593	107	682	789
- Bermuda	141	-	147	147
Total LGRI new business	4,449	3,072	4,104	7,176
1. UK pension risk transfer includes a £nil (H1 21: £925m; H2 21: £nil) Assured Payment Policy (APP).

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5.06 Retail new business

5.06 Retail new business
6 months	6 months	6 months	Full year
30 Jun	30 Jun	31 Dec	31 Dec
2022	2021	2021	2021
£m	£m	£m	£m
Individual annuities	453	483	474	957
Lifetime mortgage loans and retirement interest only mortgages	338	414	434	848
Total Retail Retirement new business	791	897	908	1,805
UK Retail protection	85	105	95	200
UK Group protection	63	55	33	88
US protection1	48	43	48	91
Total Insurance new business	196	203	176	379
Total Retail new business	987	1,100	1,084	2,184
1. In local currency, US protection reflects new business of $62m (H1 21: $59m; H2 21: $65m).

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5.07 GWP on insurance business

5.07 Gross written premiums on insurance business
6 months	6 months	6 months	Full year
30 Jun	30 Jun	31 Dec	31 Dec
2022	2021	2021	2021
£m	£m	£m	£m
UK Retail protection	740	714	730	1,444
UK Group protection	291	274	131	405
US protection1	574	512	541	1,053
Longevity insurance	154	152	155	307
Total gross written premiums on insurance business	1,759	1,652	1,557	3,209
1. In local currency, US protection reflects gross written premiums of $746m (H1 21: $712m; H2 21: $737m).

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6.01 SII - Capital position

As at 30 June 2022 the group had a surplus of £9,181m (31 December 2021: £8,185m) over its Solvency Capital Requirement, corresponding to a Solvency II capital coverage ratio of 212% (31 December 2021: 187%). The Solvency II capital position is as follows:
30 Jun 2022	31 Dec 2021
£m	£m
Unrestricted Tier 1 Own Funds	13,255	13,254
Restricted Tier 1 Own Funds1	495	495
Tier 2 Subordinated liabilities	3,733	3,995
Eligibility restrictions	(109)	(183)
Solvency II Own Funds2,3	17,374	17,561
Solvency Capital Requirement	(8,193)	(9,376)
Solvency II surplus	9,181	8,185
-

SCR Coverage ratio	212%	187%
1. Restricted Tier 1 Own Funds represent Perpetual restricted Tier 1 contingent convertible notes.
2. Solvency II Own Funds do not include an accrual for the interim dividend of £324m (31 December 2021: £790m) declared after the balance sheet date.
3. Solvency II Own Funds allow for a Risk Margin of £3,782m (2021: £5,488m) and TMTP of £3,291m (2021: £4,736m).

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6.01 SII - AoC HY22

The table below shows the movement (net of tax) during the six month period ended 30 June 2022 in the group's Solvency II surplus.
	6 months	6 months	6 months
30 Jun 2022	30 Jun 2022	30 Jun 2022
Own Funds	SCR	Surplus
£m	£m	£m
Opening Position	17,561	(9,376)	8,185
Operational Surplus Generation1	748	198	946
New business strain	175	(296)	(121)
Net surplus generation	923	(98)	825
Operating variances2	(231)
Market movements3	1,194
M&A, portfolio and business transfers	-
Subordinated liabilities	-
Dividends paid4	(792)
Total surplus movement (after dividends paid in the period)	(187)	1,183	996
Closing Position	17,374	(8,193)	9,181
1. Operational Surplus Generation includes a £176m release of Risk Margin and £(173)m amortisation of the TMTP.
2. Operating variances include the impact of experience variances, changes to valuation assumptions, methodology changes and other management actions including changes in asset mix. The net impact of operating variances over the period was negative and predominantly reflects timing differences which we expect to reverse in H2.
3. Market movements represent the impact of changes in investment market conditions during the period and changes to future economic assumptions. The movement during the period primarily reflects the impact of rising rates on the valuation of the balance sheet, partially offset by weaker asset markets, predominantly in equities, credit spread dispersion in sub-investment grade assets, as well as a number of other, smaller variances.
4. Dividends paid are the amounts from the 2021 final dividend paid in H1 2022.

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6.01 SII - AoC YE21

The table below shows the movement (net of tax) during the year ended 31 December 2021 in the group's Solvency II surplus.
Full year	Full year	Full year
31 Dec 2021	31 Dec 2021	31 Dec 2021
Own Funds	SCR	Surplus
£m	£m	£m
Opening Position	17,316	(9,880)	7,436
Operational Surplus Generation1	1,144	492	1,636
New business strain	330	(684)	(354)
Net surplus generation	1,474	(192)	1,282
Operating variances2	26
Market movements3	727
M&A, portfolio and business transfers4	77
Subordinated liabilities5	(300)
Dividends paid6	(1,063)
Total surplus movement (after dividends paid in the period)	245	504	749
Closing Position	17,561	(9,376)	8,185
1. Operational Surplus Generation includes a £612m release of Risk Margin and £(433)m amortisation of the TMTP.
2. Operating variances include the impact of experience variances, changes to valuation assumptions, methodology changes and other management actions including changes in asset mix.
3. Market movements represent the impact of changes in investment market conditions over the year and changes to future economic assumptions.
4. Includes the impact of the sale of the Personal Investment business.
5. Reflects the redemption of £300m debt issued in 2009.
6. Dividends paid are the amounts from the 2020 final dividend and the 2021 interim dividend.

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6.01 SII - Release from op rec.

(d) Reconciliation of IFRS Release from operations to Solvency II Operational surplus generation
(i) The table below provides a reconciliation of the group's IFRS Release from operations to Solvency II Operational surplus generation.
6 months	Full year
2022	2021
£m	£m
IFRS Release from operations	892	1,441
Expected release of IFRS prudential margins	(273)	(496)
Releases of IFRS specific reserves1	(83)	(162)
Solvency II investment margin2,3	67	213
Release of Solvency II Capital Requirement and Risk Margin less TMTP amortisation	343	640
Solvency II Operational surplus generation4	946	1,636
1. Release of prudence from IFRS specific reserves which are not included in Solvency II (e.g. long-term longevity and expense margins).
2. Release of prudence related to differences between the PRA defined Fundamental Spread and Legal & General's best estimate default assumption.
3. Expected market returns earned on LGR's free assets in excess of risk-free rates over 2022.
4. Solvency II Operational Surplus Generation includes management actions which at the start of 2022 were reasonably expected to be implemented over the year.

(ii) The table below provides a reconciliation of the group's IFRS New business surplus to Solvency II New business strain.
6 months	Full year
2022	2021
£m	£m
IFRS New business surplus	153	247
Removal of requirement to set up prudential margins above best estimate on new business	94	280
Set up of SCR on new business	(296)	(684)
Set up of Risk Margin on new business	(72)	(197)
Solvency II New business strain1	(121)	(354)
1. UK PRT new business volume during the first half of 2022 was £3.7bn (Full year 2021: £6.2bn).

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6.01 SII - IFRS equity rec.

A reconciliation of the group's IFRS equity to Solvency II Own Funds is given below:
			30 Jun 2022	31 Dec 2021
		£m	£m
IFRS equity1	11,679	10,981
Remove DAC, goodwill and other intangible assets and associated liabilities	(428)	(406)
Add IFRS carrying value of subordinated borrowings2	3,813	3,700
Insurance contract valuation differences3	2,808	4,132
Difference in value of net deferred tax liabilities	(494)	(716)
Other	105	53
Eligibility restrictions	(109)	(183)
Solvency II Own Funds4	17,374	17,561
1. IFRS equity represents equity attributable to owners of the parent and restricted Tier 1 convertible notes as per the Consolidated Balance Sheet.
2. Treated as available capital on the Solvency II balance sheet as the liabilities are subordinate to policyholder claims.
3. Differences in the measurement of technical provisions between IFRS and Solvency II.
4. Solvency II Own Funds do not include an accrual for the interim dividend of £324m (31 December 2021: £790m) declared after the balance sheet date.

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6.01 SII - Sensitivity analysis

6.01 Group regulatory capital - Solvency II (continued)
(f) Sensitivity analysis The following sensitivities are provided to give an indication of how the group's Solvency II surplus as at 30 June 2022 would have changed in a variety of adverse events. These are all independent stresses to a single risk. In practice, the balance sheet is impacted by combinations of stresses and the combined impact can be larger than adding together the impacts of the same stresses in isolation. It is expected that, particularly for market risks, adverse stresses will happen together.
Impact on	Impact on	Impact on	Impact on
net of tax	net of tax	net of tax	net of tax
Solvency II	Solvency II	Solvency II	Solvency II
capital	coverage	capital	coverage
	surplus	ratio	surplus	ratio
	2022	2022	2021	2021
£bn	%	£bn	%
50bps increase in risk-free rates1	0.3	9	0.5	10
100bps increase in risk-free rates1	0.5	19	0.9	19
50bps decrease in risk-free rates1,2	(0.3)	(9)	(0.6)	(10)
Credit spreads widen by 100bps assuming an escalating addition to ratings3,4	0.4	12	0.6	13
Credit spreads narrow by 100bps assuming an escalating deduction from ratings3,4	(0.4)	(15)	(0.6)	(14)
Credit spreads widen by 100bps assuming a flat addition to ratings3	0.4	14	0.7	14
Credit spreads of sub investment grade assets widen by 100bps assuming a level addition to ratings3,5	(0.3)	(8)	(0.4)	(7)
Credit migration6	(1.2)	(14)	(0.9)	(10)
25% fall in equity markets7	(0.4)	(3)	(0.5)	(3)
15% fall in property markets8	(0.9)	(9)	(0.8)	(7)
50bps increase in future inflation expectations1	- 0	(3)	- 0	(2)
Substantially reduced Risk Margin9	0.5	7	0.6	7
1. Assuming a recalculation of the Transitional Measure on Technical Provisions that partially offsets the impact on Risk Margin.
2. In the interest rate down stress negative rates are allowed, i.e. there is no floor at zero rates.
3. The spread sensitivity applies to the group's corporate bond (and similar) holdings, with no change in long-term default expectations, post management actions. Restructured lifetime mortgages are excluded as the underlying exposure is mostly to property.
4. The stress for AA bonds is twice that for AAA bonds, for A bonds it is three times, for BBB four times and so on, such that the weighted average spread stress for the portfolio is 100 basis points. To give a 100bps increase on the total portfolio, the spread stress increases in steps of 32bps, i.e. 32bps for AAA, 64bps for AA etc.
5. No stress for bonds rated BBB and above. For bonds rated BB and below the stress is 100bps. The spread widening on the total portfolio is smaller than 2bps as the group holds less than 2% in bonds rated BB and below. The impact is primarily an increase in SCR arising from the modelled cost of trading downgraded bonds back to a higher rating in the stress scenarios in the SCR calculation.
6. Credit migration stress covers the cost of an immediate big letter downgrade on 20% of all assets where the capital treatment depends on a credit rating (including corporate bonds, and sale and leaseback rental strips; lifetime mortgage senior notes are excluded). Downgraded assets in our annuities portfolio are assumed to be traded to their original credit rating, so the impact is primarily a reduction in Own Funds from the loss of value on downgrade. The impact of the sensitivity will depend upon the market levels of spreads at the balance sheet date.
7. This relates primarily to equity exposure in LGC but will also include equity-based mutual funds and other investments that receive an equity stress (for example, certain investments in subsidiaries). Some assets have factors that increase or decrease the stress relative to general equity levels via a beta factor.
8. Assets stressed include residual values from sale and leaseback, the full amount of lifetime mortgages and direct investments treated as property.
9. Assuming a 2/3 reduction in the Risk Margin, allowing for offset from an equivalent reduction in the Transitional Measure on Technical Provisions.
The above sensitivity analysis does not reflect all management actions which could be taken to reduce the impacts. In practice, the group actively manages its asset and liability positions to respond to market movements. Other than in the interest rate and inflation stresses, we have not allowed for the recalculation of TMTP following a stress.
The impacts of these stresses are not linear therefore these results should not be used to interpolate or extrapolate the impact of a smaller or larger stress. The results of these tests are indicative of the market conditions prevailing at the balance sheet date. The results would be different if performed at an alternative reporting date.

&"Arial"&10&KFF8C00Confidential&1#

6.02 SII - New business product

6.02 Estimated Solvency II new business contribution
(a) New business by product1
Management estimates of the present value of new business premium (PVNBP) and the margin for selected lines of business are provided below:


Contribution	Contribution
from new	from new
PVNBP	business2	Margin3	PVNBP	business2	Margin3
6 months	6 months	6 months	Full year	Full year	Full year
2022	2022	2022	2021	2021	2021
£m	£m	%	£m	£m	%
LGRI - UK annuity business	3,715	323	8.7	6,059	574	9.5
Retail Retirement - UK annuity business	453	32	7.1	957	61	6.4
UK protection business	870	50	5.7	1,883	149	7.9
- retail protection	578	28	4.8	1,476	120	8.1
- group protection	292	22	7.5	407	29	7.1
US protection business4	391	42	10.7	842	113	13.4
1. Selected lines of business only.
2. The contribution from new business is defined as the present value at the point of sale of expected future Solvency II surplus emerging from new business written in the year using the risk discount rate applicable at the end of the year.
3. Margin is based on unrounded inputs.
4. In local currency, US protection business reflects PVNBP of $508m (31 December 2021: $1,159m) and a contribution from new business of $54m (31 December 2021: $155m).
The decrease in LGRI margin was driven by the shorter average duration for the schemes written in the first six months of the year, compared to the schemes written in prior year. The increase in Retail Retirement margin is driven by pricing that is focused on both value and volume in light of the lack of growth in the overall retail market. There was also a benefit from the rise in interest rates over the first half of the year. The UK protection contribution from new business is supported by robust volumes, particularly in the group protection business. Retail protection business is impacted by a smaller market (2021 benefitted from a buoyant housing market driven by stamp duty relief) and competitive conditions in 2022. The US protection business margin, whilst still very strong, reduced compared to the prior full year. The decrease is driven by pricing actions and an increase in acquisition expenses.

&"Arial"&10&KFF8C00Confidential&1#

6.02 SII - Assumptions table

30 Jun 2022	31 Dec 2021
%	%
Margin for Risk	4.1	4.1
Risk-free rate
- UK	2.3	0.9
- US	3.0	1.5
Risk discount rate (net of tax)
- UK	6.4	5.0
- US	7.1	5.6
Long-term rate of retuon non-profit annuities	4.4	2.5

&"Arial"&10&KFF8C00Confidential&1#

6.02 SII - PVNBP to GWP

6.02 Estimated Solvency II new business contribution (continued)
(d) Reconciliation of PVNBP to gross written premium
A reconciliation of PVNBP and gross written premium is given below:
6 months	Full year
2022	2021
Notes	£bn	£bn
PVNBP	6.02 (a)	5.4	9.7
Effect of capitalisation factor	(0.9)	(2.1)
New business premiums from selected lines	4.5	7.6
Other1	0.9	1.8
Total LGRI and Retail new business	5.05,5.06	5.4	9.4
Annualisation impact of regular premium long-term business	(0.2)	(0.2)
IFRS gross written premiums from existing long-term insurance business	1.8	3.3
Deposit accounting for investment products	(0.4)	(2.1)
Total gross written premiums2	6.6	10.4
1. Other principally includes annuity sales in the US, lifetime mortgage loans and retirement interest only mortgages, and quota share reinsurance premiums.
2. Total gross written premiums includes £55m (2021: £109m) of gross written premiums relating to a residual reinsurance treaty following the disposal of the General Insurance business in 2019.

&"Arial"&10&KFF8C00Confidential&1#

7.01 Investment portfolio

7.01 Investment portfolio
Market	Market	Market
value	value	value
30 Jun	30 Jun	31 Dec
2022	2021	2021
£m	£m	£m
Worldwide total assets under management1	1,295,640	1,333,203	1,426,462
Client and policyholder assets	(1,175,344)	(1,218,560)	(1,309,772)
Investments to which shareholders are directly exposed	120,296	114,643	116,690
1. Worldwide total assets under management include LGIM AUM and other group assets not managed by LGIM.

&"Arial"&10&KFF8C00Confidential&1#

7.01 Investments by inv. class

Analysed by investment class:
Other
Annuity1	LGC2	shareholder
investments	investments	investments	Total	Total	Total
30 Jun	30 Jun	30 Jun	30 Jun	30 Jun	31 Dec
2022	2022	2022	2022	2021	2021
Notes	£m	£m	£m	£m	£m	£m
Equities	65	3,071	356	3,492	3,088	3,185
Bonds	7.03	73,174	947	2,693	76,814	82,699	86,803
Derivative assets3	24,832	239	-	25,071	14,019	13,203
Property	7.04	5,632	524	-	6,156	5,103	5,710
Loans4	1,346	377	79	1,802	4,301	2,332
Financial investments	4.03 (a)	105,049	5,158	3,128	113,335	109,210	111,233
Cash and cash equivalents	2,665	1,276	1,032	4,973	3,740	3,596
Other assets5	94	1,894	-	1,988	1,693	1,861
Total investments	107,808	8,328	4,160	120,296	114,643	116,690
1. Annuity investments includes products held within the LGRI and Retail Retirement portfolios including lifetime mortgage loans & retirement interest only mortgages.
2. LGC investments includes £60m (30 June 2021: £52m; 31 December 2021: £54m) of equities that belong to Legal & General Reinsurance Company Limited.
3. Derivative assets are shown gross of derivative liabilities of £28.4bn (30 June 2021: £17.7bn; 31 December 2021: £14.1bn). Exposures arise from use of derivatives for efficient portfolio management, especially the use of interest rate swaps, inflation swaps, credit default swaps and foreign exchange forward contracts for assets and liability management.
4. Loans include reverse repurchase agreements of £1,701m (30 June 2021: £4,152m; 31 December 2021: £2,240m).
5. Other assets include finance leases of £85m (30 June 2021: £87m; 31 December 2021: £86m), associates and joint ventures of £387m (30 June 2021: £314m; 31 December 2021: £375m) and the consolidated net asset value of the group's investments in CALA Homes and other housing businesses.

7.02 DI by asset class

7.02 Direct investments
(a) Total investments analysed by asset class
Direct1	Traded2	Direct1	Traded2	Direct1	Traded2
investments	securities	Total	investments	securities	Total	investments	securities	Total
30 Jun	30 Jun	30 Jun	30 Jun	30 Jun	30 Jun	31 Dec	31 Dec	31 Dec
2022	2022	2022	2021	2021	2021	2021	2021	2021
£m	£m	£m	£m	£m	£m	£m	£m	£m
Equities	1,431	2,061	3,492	1,202	1,886	3,088	1,248	1,937	3,185
Bonds3	21,773	55,041	76,814	22,218	60,481	82,699	24,237	62,566	86,803
Derivative assets	-	25,071	25,071	-	14,019	14,019	-	13,203	13,203
Property4	6,156	-	6,156	5,103	-	5,103	5,710	-	5,710
Loans and other receivables	71	1,731	1,802	119	4,182	4,301	63	2,269	2,332
Financial investments	29,431	83,904	113,335	28,642	80,568	109,210	31,258	79,975	111,233
Cash and cash equivalents	116	4,857	4,973	221	3,519	3,740	114	3,482	3,596
Other assets	1,988	-	1,988	1,693	-	1,693	1,861	-	1,861
Total investments	31,535	88,761	120,296	30,556	84,087	114,643	33,233	83,457	116,690
1. Direct investments, which generally constitute an agreement with another party, represent an exposure to untraded and often less volatile asset classes. Direct investments also include physical assets, bilateral loans and private equity, but excluded hedge funds.
2. Traded securities are defined by exclusion. If an instrument is not a direct investment, then it is classed as a traded security.
3. Bonds include lifetime mortgage loans of £5,758m (30 June 2021: £6,325m; 31 December 2021: £6,857m).
4. A further breakdown of property is provided in Note 7.04.

7.02 DI by asset portfolio HY22

7.02 Direct investments (continued)
(b) Direct investments analysed by asset portfolio
Annuity1	Shareholder2	Insurance3	Total
30 Jun	30 Jun	30 Jun	30 Jun
2022	2022	2022	2022
£m	£m	£m	£m
-
Equities	42	1,192	197	1,431
Bonds4	20,498	3	1,272	21,773
Property	5,632	524	-	6,156
Loans and other receivables	-	71	-	71
Financial investments	26,172	1,790	1,469	29,431
Other assets, cash and cash equivalents	94	2,010	-	2,104
Total direct investments	26,266	3,800	1,469	31,535

7.02 DI by asset portfolio HY21

Annuity1	Shareholder2	Insurance3	Total
30 Jun	30 Jun	30 Jun	30 Jun
2021	2021	2021	2021
£m	£m	£m	£m
Equities	9	1,077	116	1,202
Bonds4	21,023	3	1,192	22,218
Property	4,639	464	-	5,103
Loans and other receivables	-	119	-	119
Financial investments	25,671	1,663	1,308	28,642
Other assets, cash and cash equivalents	100	1,814	-	1,914
Total direct investments	25,771	3,477	1,308	30,556

7.02 DI by asset portfolio YE21

Annuity1	Shareholder2	Insurance3	Total
31 Dec	31 Dec	31 Dec	31 Dec
2021	2021	2021	2021
£m	£m	£m	£m
Equities	12	1,124	112	1,248
Bonds4	23,029	3	1,205	24,237
Property	5,286	424	-	5,710
Loans and other receivables	-	63	-	63
Financial investments	28,327	1,614	1,317	31,258
Other assets, cash and cash equivalents	96	1,879	-	1,975
Total direct investments	28,423	3,493	1,317	33,233
1. Annuity investments includes products held within the LGRI and Retail Retirement portfolios including lifetime mortgage loans & retirement interest only mortgages.
2. Shareholder primarily includes the LGC direct investment portfolio along with £60m (30 June 2021: £52m; 31 December 2021: £54m) of equities that belong to other shareholder funds.
3. Insurance primarily includes assets backing the group's US protection business.
4. Bonds include lifetime mortgage loans of £5,758m (30 June 2021: £6,325m; 31 December 2021: £6,857m).

7.03 Bond port. by sector HY22

7.03 Bond portfolio summary
(a) Sectors analysed by credit rating

BB or
AAA	AA	A	BBB	below	Other	Total2	Total2
As at 30 June 2022	£m	£m	£m	£m	£m	£m	£m	%
Sovereigns, Supras and Sub-Sovereigns	1,696	8,049	1,169	294	11	1	11,220	15
Banks:
- Tier 2 and other subordinated	-	-	68	52	3	1	124	-
- Senior	-	1,336	2,336	942	1	-	4,615	6
- Covered	120	-	-	-	-	-	120	-
Financial Services:
- Tier 2 and other subordinated	-	118	50	32	-	17	217	-
- Senior	51	307	439	368	-	-	1,165	2
Insurance:
- Tier 2 and other subordinated	59	175	32	51	-	-	317	-
- Senior	5	166	416	462	-	-	1,049	1
Consumer Services and Goods:
- Cyclical	-	39	1,360	1,877	159	3	3,438	4
- Non-cyclical	323	880	2,531	3,732	247	-	7,713	10
- Health care	-	608	808	761	4	-	2,181	3
Infrastructure:
- Social	184	891	3,660	882	79	-	5,696	7
- Economic	273	173	891	3,744	180	-	5,261	7
Technology and Telecoms	141	325	1,546	2,801	20	1	4,834	6
Industrials	-	52	613	659	29	-	1,353	2
Utilities	386	628	4,711	5,523	28	-	11,276	15
Energy	-	-	331	765	16	-	1,112	1
Commodities	-	-	337	781	25	8	1,151	2
Oil and Gas	-	505	873	316	226	24	1,944	3
Real estate	-	23	1,906	1,677	107	-	3,713	5
Structured finance ABS / RMBS / CMBS / Other	539	771	463	695	30	-	2,498	3
Lifetime mortgage loans1	3,721	1,146	497	381	-	13	5,758	8
CDOs	-	47	-	12	-	-	59	-
Total £m	7,498	16,239	25,037	26,807	1,165	68	76,814	100
Total %	10	21	33	35	1	-	100
1. The credit ratings attributed to lifetime mortgage loans are allocated in accordance with the internal Matching Adjustment structuring. 2. The group's bond portfolio is dominated by investments backing LGRI's and Retail Retirement's annuity business. These account for £73,174m, representing 95% of the total group portfolio.

7.03 Bond port. by sector HY21

7.03 Bond portfolio summary (continued)
(a) Sectors analysed by credit rating (continued)
BB or
AAA	AA	A	BBB	below	Other	Total2	Total2
As at 30 June 2021	£m	£m	£m	£m	£m	£m	£m	%
Sovereigns, Supras and Sub-Sovereigns	1,925	10,091	1,249	335	10	-	13,610	17
Banks:
- Tier 2 and other subordinated	-	-	58	39	4	-	101	-
- Senior	-	1,024	3,490	790	2	-	5,306	6
- Covered	151	-	-	-	-	-	151	-
Financial Services:
- Tier 2 and other subordinated	-	113	57	21	-	-	191	-
- Senior	55	443	406	393	9	-	1,306	2
Insurance:
- Tier 2 and other subordinated	64	196	31	58	-	-	349	-
- Senior	-	221	405	542	-	-	1,168	1
Consumer Services and Goods:	-	-	-
- Cyclical	-	84	1,135	1,772	193	-	3,184	4
- Non-cyclical	338	1,052	2,658	3,936	344	-	8,328	10
- Health care	-	605	851	690	5	-	2,151	3
Infrastructure:
- Social	208	746	4,669	916	77	-	6,616	8
- Economic	311	51	766	4,053	183	-	5,364	6
Technology and Telecoms	174	209	1,462	3,085	22	1	4,953	6
Industrials	-	31	672	694	22	-	1,419	2
Utilities	-	207	5,629	5,861	27	-	11,724	14
Energy	-	-	468	589	16	-	1,073	1
Commodities	-	-	365	910	8	-	1,283	2
Oil and Gas	-	560	1,047	389	274	-	2,270	3
Real estate	-	11	1,728	1,591	177	-	3,507	4
Structured finance ABS / RMBS / CMBS / Other	423	798	403	603	24	1	2,252	3
Lifetime mortgage loans1	3,852	1,509	524	427	-	13	6,325	8
CDOs	-	55	-	13	-	-	68	-
Total £m	7,501	18,006	28,073	27,707	1,397	15	82,699	100
Total %	9	22	34	33	2	-	100
1. The credit ratings attributed to lifetime mortgage loans are allocated in accordance with the internal Matching Adjustment structuring.
2. The group's bond portfolio is dominated by investments backing LGRI's and Retail Retirement's annuity business. These account for £78,226m, representing 95% of the total group portfolio.

7.03 Bond port. by sector YE21

7.03 Bond portfolio summary (continued)
(a) Sectors analysed by credit rating (continued)

BB or
AAA	AA	A	BBB	below	Other	Total2	Total2
As at 31 December 2021	£m	£m	£m	£m	£m	£m	£m	%
Sovereigns, Supras and Sub-Sovereigns	2,008	10,348	1,302	360	9	-	14,027	16
Banks:
- Tier 2 and other subordinated	-	-	56	36	3	-	95	-
- Senior	95	1,858	3,998	738	1	-	6,690	8
- Covered	138	-	-	-	-	-	138	-
Financial Services:
- Tier 2 and other subordinated	-	111	60	72	-	8	251	-
- Senior	57	416	422	315	-	-	1,210	1
Insurance:
- Tier 2 and other subordinated	61	192	32	62	-	-	347	-
- Senior	4	196	460	535	-	-	1,195	1
Consumer Services and Goods:
- Cyclical	-	33	1,399	1,760	206	-	3,398	4
- Non-cyclical	350	1,003	2,737	3,836	346	-	8,272	10
- Health care	-	690	837	889	5	-	2,421	3
Infrastructure:
- Social	215	780	5,001	900	79	-	6,975	8
- Economic	303	50	1,121	4,294	191	-	5,959	7
Technology and Telecoms	177	307	1,530	3,024	22	2	5,062	6
Industrials	-	31	688	558	30	-	1,307	2
Utilities	27	206	5,666	5,947	30	-	11,876	14
Energy	-	-	385	840	16	-	1,241	1
Commodities	-	-	365	889	8	-	1,262	1
Oil and Gas	-	546	971	387	271	-	2,175	3
Real estate	-	16	1,802	1,587	122	-	3,527	4
Structured finance ABS / RMBS / CMBS / Other	450	860	445	668	28	-	2,451	3
Lifetime mortgage loans1	4,238	1,550	584	470	-	15	6,857	8
CDOs	-	-	54	13	-	-	67	-
Total £m	8,123	19,193	29,915	28,180	1,367	25	86,803	100
Total %	9	22	35	32	2	-	100
1. The credit ratings attributed to lifetime mortgage loans are allocated in accordance with the internal Matching Adjustment structuring. 2. The group's bond portfolio is dominated by investments backing LGRI's and Retail Retirement's annuity business. These account for £81,812m, representing 94% of the total group portfolio.

7.03 Bond port. by dom. HY22

7.03 Bond portfolio summary (continued)
(b) Sectors analysed by domicile
Rest of
UK	US	EU	the World	Total
As at 30 June 2022	£m	£m	£m	£m	£m
Sovereigns, Supras and Sub-Sovereigns	7,685	1,774	768	993	11,220
Banks	1,514	1,849	812	684	4,859
Financial Services	341	403	380	258	1,382
Insurance	101	1,131	19	115	1,366
Consumer Services and Goods:
- Cyclical	473	2,299	395	271	3,438
- Non-cyclical	1,888	5,311	354	160	7,713
- Health care	275	1,842	63	1	2,181
Infrastructure:
- Social	4,965	524	158	49	5,696
- Economic	3,711	881	264	405	5,261
Technology and Telecoms	403	3,080	699	652	4,834
Industrials	189	799	313	52	1,353
Utilities	6,303	2,583	1,877	513	11,276
Energy	312	633	1	166	1,112
Commodities	37	449	151	514	1,151
Oil and Gas	167	567	686	524	1,944
Real estate	1,938	934	544	297	3,713
Structured Finance ABS / RMBS / CMBS / Other	704	1,503	11	280	2,498
Lifetime mortgage loans	5,758	-	-	-	5,758
CDOs	-	-	-	59	59
Total	36,764	26,562	7,495	5,993	76,814

7.03 Bond port. by dom. HY21

7.03 Bond portfolio summary (continued)
(b) Sectors analysed by domicile (continued)
Rest of
UK	US	EU	the World	Total
As at 30 June 2021	£m	£m	£m	£m	£m
Sovereigns, Supras and Sub-Sovereigns	9,937	1,900	861	912	13,610
Banks	1,807	1,828	1,241	682	5,558
Financial Services	532	344	555	66	1,497
Insurance	103	1,239	60	115	1,517
Consumer Services and Goods:
- Cyclical	446	2,088	503	147	3,184
- Non-cyclical	1,952	5,822	382	172	8,328
- Health care	285	1,785	80	1	2,151
Infrastructure:
- Social	5,826	582	160	48	6,616
- Economic	3,941	847	226	350	5,364
Technology and Telecoms	407	2,981	707	858	4,953
Industrials	186	815	351	67	1,419
Utilities	6,834	2,230	2,075	585	11,724
Energy	229	622	96	126	1,073
Commodities	6	564	183	530	1,283
Oil and Gas	213	634	792	631	2,270
Real estate	2,089	562	620	236	3,507
Structured Finance ABS / RMBS / CMBS / Other	919	1,237	11	85	2,252
Lifetime mortgage loans	6,325	-	-	-	6,325
CDOs	-	-	-	68	68
Total	42,037	26,080	8,903	5,679	82,699

7.03 Bond port. by dom. YE21

7.03 Bond portfolio summary (continued)
(b) Sectors analysed by domicile (continued)
Rest of
UK	US	EU	the World	Total
As at 31 December 2021	£m	£m	£m	£m	£m
Sovereigns, Supras and Sub-Sovereigns	9,829	1,892	1,244	1,062	14,027
Banks	2,253	1,799	1,956	915	6,923
Financial Services	425	429	517	90	1,461
Insurance	113	1,291	15	123	1,542
Consumer Services and Goods
- Cyclical	473	2,213	442	270	3,398
- Non-cyclical	1,879	5,828	391	174	8,272
- Health care	284	2,054	82	1	2,421
Infrastructure
- Social	6,141	628	154	52	6,975
- Economic	4,348	902	309	400	5,959
Technology and Telecoms	412	3,025	782	843	5,062
Industrials	190	681	354	82	1,307
Utilities	6,963	2,158	2,217	538	11,876
Energy	415	667	1	158	1,241
Commodities	20	537	175	530	1,262
Oil and Gas	196	626	785	568	2,175
Real estate	1,895	734	602	296	3,527
Structured finance ABS / RMBS / CMBS / Other	861	1,395	10	185	2,451
Lifetime mortgage loans	6,857	-	-	-	6,857
CDOs	-	-	-	67	67
Total	43,554	26,859	10,036	6,354	86,803

7.03 Bond port. credit rating

7.03 Bond portfolio summary (continued)
(c) Bond portfolio analysed by credit rating
Externally	Internally
rated	rated1	Total
As at 30 June 2022	£m	£m	£m
AAA	3,449	4,049	7,498
AA	13,439	2,800	16,239
A	17,049	7,988	25,037
BBB	19,723	7,084	26,807
BB or below	777	388	1,165
Other	19	49	68
Total	54,456	22,358	76,814

Externally	Internally
rated	rated1	Total
As at 30 June 2021	£m	£m	£m
AAA	3,254	4,247	7,501
AA	14,732	3,274	18,006
A	20,595	7,478	28,073
BBB	21,462	6,245	27,707
BB or below	970	427	1,397
Other	1	14	15
Total	61,014	21,685	82,699
Externally	Internally
rated	rated1	Total
As at 31 December 2021	£m	£m	£m
AAA	3,506	4,617	8,123
AA	15,544	3,649	19,193
A	21,240	8,675	29,915
BBB	20,715	7,465	28,180
BB or below	950	417	1,367
Other	10	15	25
Total	61,965	24,838	86,803
1. Where external ratings are not available an internal rating has been used where practicable to do so.

7.03 Bond port. DI & trad. HY22

7.03 Bond portfolio summary (continued)
(d) Sectors analysed by Direct investments and Traded securities
Direct	Traded
investments	securities	Total
As at 30 June 2022	£m	£m	£m
Sovereigns, Supras and Sub-Sovereigns	747	10,473	11,220
Banks	742	4,117	4,859
Financial Services	507	875	1,382
Insurance	116	1,250	1,366
Consumer Services and Goods:
- Cyclical	579	2,859	3,438
- Non-cyclical	489	7,224	7,713
- Health care	283	1,898	2,181
Infrastructure:
- Social	2,953	2,743	5,696
- Economic	3,762	1,499	5,261
Technology and Telecoms	192	4,642	4,834
Industrials	99	1,254	1,353
Utilities	1,679	9,597	11,276
Energy	368	744	1,112
Commodities	70	1,081	1,151
Oil and Gas	61	1,883	1,944
Real estate	2,287	1,426	3,713
Structured Finance ABS / RMBS / CMBS / Other	1,081	1,417	2,498
Lifetime mortgage loans	5,758	-	5,758
CDOs	-	59	59
Total	21,773	55,041	76,814

7.03 Bond port. DI & trad. HY21

7.03 Bond portfolio summary (continued)
(d) Sectors analysed by Direct investments and Traded securities (continued)
Direct	Traded
investments	securities	Total
As at 30 June 2021	£m	£m	£m
Sovereigns, Supras and Sub-Sovereigns	991	12,619	13,610
Banks	628	4,930	5,558
Financial Services	396	1,101	1,497
Insurance	162	1,355	1,517
Consumer Services and Goods:
- Cyclical	469	2,715	3,184
- Non-cyclical	386	7,942	8,328
- Health care	339	1,812	2,151
Infrastructure:
- Social	3,507	3,109	6,616
- Economic	3,696	1,668	5,364
Technology and Telecoms	129	4,824	4,953
Industrials	58	1,361	1,419
Utilities	1,656	10,068	11,724
Energy	331	742	1,073
Commodities	57	1,226	1,283
Oil and Gas	57	2,213	2,270
Real estate	2,109	1,398	3,507
Structured Finance ABS / RMBS / CMBS / Other	925	1,327	2,252
Lifetime mortgage loans	6,325	-	6,325
CDOs	-	68	68
Total	22,221	60,478	82,699

7.03 Bond port. DI & trad. YE21

7.03 Bond portfolio summary (continued)
(d) Sectors analysed by Direct investments and Traded securities (continued)
Direct	Traded
investments	securities	Total
As at 31 December 2021	£m	£m	£m
Sovereigns, Supras and Sub-Sovereigns	1,037	12,990	14,027
Banks	665	6,258	6,923
Financial Services	432	1,029	1,461
Insurance	119	1,423	1,542
Consumer Services and Goods:
- Cyclical	498	2,900	3,398
- Non-cyclical	512	7,760	8,272
- Health care	357	2,064	2,421
Infrastructure:
- Social	3,699	3,276	6,975
- Economic	4,267	1,692	5,959
Technology and Telecoms	153	4,909	5,062
Industrials	60	1,247	1,307
Utilities	1,883	9,993	11,876
Energy	475	766	1,241
Commodities	55	1,207	1,262
Oil and Gas	56	2,119	2,175
Real estate	2,091	1,436	3,527
Structured Finance ABS / RMBS / CMBS / Other	1,021	1,430	2,451
Lifetime mortgage loans	6,857	-	6,857
CDOs	-	67	67
Total	24,237	62,566	86,803

7.04 Property analysis

7.04 Property analysis
Property exposure within Direct investments by status
Annuity1	Shareholder2	Total
As at 30 June 2022	£m	£m	£m	%
Fully let	5,190	-	5,190	84
Development	442	403	845	14
Land	-	121	121	2
Total	5,632	524	6,156	100
Annuity1	Shareholder2	Total
As at 30 June 2021	£m	£m	£m	%
Fully let	4,035	-	4,035	79
Development	604	323	927	18
Land	-	141	141	3
Total	4,639	464	5,103	100

Annuity1	Shareholder2	Total
As at 31 December 2021	£m	£m	£m	%
Fully let	4,746	-	4,746	83
Development	540	293	833	15
Land	-	131	131	2
Total	5,286	424	5,710	100
1. The fully let annuity property exposure includes £4.9bn (30 June 2021: £4.0bn; 31 December 2021: £4.5bn) let to investment grade tenants.
2. The above analysis does not include assets related to the group's investments in CALA Homes and other housing businesses, which are accounted for as inventory within Receivables and other assets on the group's Consolidated Balance Sheet and measured at the lower of cost and net realisable value. At 30 June 2022 the group held a total of £2,072m (30 June 2021: £2,190m; 31 December 2021: £2,044m) of such assets.

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Legal & General Group plc published this content on 09 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2022 07:52:02 UTC.

Key financial tables

2.01 Operating profit

2.02 Release from Ops HY22

2.02 Release from Ops HY21

2.02 Release from Ops FY21

2.03 Analysis of op. profit

2.04 LGC operating profit

2.05 LGIM operating profit

2.06 Investment and other var.

2.07 EPS - basic

2.07 EPS - diluted

2.08 Seg. analysis - profit

2.08 Seg. analysis - revenue

2.08 Seg. analysis - income

2.08 Seg. analysis - fees

2.08 Seg. analysis - other inc.

3.01 Consol. Income Statement

3.02 Consol. SOCI

3.03 Consol. Balance Sheet

3.04 Consol. SOCIE HY22

3.04 Consol. SOCIE HY21

3.04 Consol. SOCIE YE21

3.05 Consol. Cash Flow

4.02 Dividends

4.03 Total fin. investments

4.03 FV fin. investments HY22

4.03 FV fin. investments HY21

4.03 FV fin. investments YE21

4.03 Inv. property by sector

4.03 Fin. investments lev. 3 FV

4.03 Change in assumptions

4.04 IFRS -Tax charge

4.04 IFRS - Deferred tax

4.05 Share cap. and share prem

4.08 Core borrowings

4.09 Operational borrowings

4.10 Movement in borrowings

4.11 Payables and other fin.

4.12 Foreign exchange rates

4.13 Provisions

4.15 Related party transactions

5.01 LGIM total AUM

5.01 LGIM total AUM YE21

5.02 LGIM AUM net flows

5.03 Rec. of AUM to BS

5.04 LGIM total AUA

5.05 LGRI new business

5.06 Retail new business

5.07 GWP on insurance business

6.01 SII - Capital position

6.01 SII - AoC HY22

6.01 SII - AoC YE21

6.01 SII - Release from op rec.

6.01 SII - IFRS equity rec.

6.01 SII - Sensitivity analysis

6.02 SII - New business product

6.02 SII - Assumptions table

6.02 SII - PVNBP to GWP

7.01 Investment portfolio

7.01 Investments by inv. class

7.02 DI by asset class

7.02 DI by asset portfolio HY22

7.02 DI by asset portfolio HY21

7.02 DI by asset portfolio YE21

7.03 Bond port. by sector HY22

7.03 Bond port. by sector HY21

7.03 Bond port. by sector YE21

7.03 Bond port. by dom. HY22

7.03 Bond port. by dom. HY21

7.03 Bond port. by dom. YE21

7.03 Bond port. credit rating

7.03 Bond port. DI & trad. HY22

7.03 Bond port. DI & trad. HY21

7.03 Bond port. DI & trad. YE21

7.04 Property analysis

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