Insurance giant Legal & General has posted lower operating profits after it was badly hit by the slowdown in housebuilding and lower life insurance demand during the pandemic.
The FTSE 100 company told investors that its operating profits dipped 3% to £2.2 billion for 2020.
It said the decline also reflected lower interest rates and the “unrealised impacted of market movement”.
L&G said this impact was largely offset by the sale of its Mature Savings business to ReAssure last year.
However, the company said that it remains on track to meet its five-year growth ambitions despite the impact of Covid-19.
It told shareholders that its asset management business reported a 7% increase in assets to £1.3 trillion during the year, as net inflows jumped by £20 billion.
L&G also said that individual annuity and lifetime mortgage sales volumes in the UK also declined during the period.
Nigel Wilson, group chief executive at L&G, said: “Legal & General delivered a robust and resilient performance for all stakeholders, providing stability to our people, customers and shareholders.
“Our balance sheet remains strong and trading remains consistent with delivering our growth ambitions which are supported by six long-term growth drivers.
“Our commitment to inclusive capitalism, ESG and investing in climate change means we intend to play an important role in the post pandemic recovery.”
Shares in the company were 0.25% lower at 281.3p in early trading.