Forward looking statements

Transcription

1 Legal & General Group plc Capital Markets Event December 2016

2 Forward looking statements

3 Introduction Nigel Wilson

4 Capital markets event objectives Ambition: to repeat operating performance achieved in in

5 Agenda

6 Our vision and equity narrative

7 TRADITIONAL DIVISIONS ASSET GATHERING DIVISIONS We are a focused, high performing business DIVISIONS H OPERATING PROFIT ALLOCATION 1 m % MARKET PERFORMANCE LGR LGIM LGC Total LGI General Insurance 31 3 Savings 49 5 Total Group

8 We are a focused, high performing business aligned to key long term structural growth drivers GROWTH DRIVERS OUR CAPABILITIES CONTINUED PROGRESS GLOBAL DEMOGRAPHICS RETIREMENT SOLUTIONS LGR ASSETS INCREASED FROM 28BN in 2011 TO 51BN IN H GLOBALISATION OF ASSET MARKETS INTERNATIONALLY REPLICABLE MODEL LGIM AUM GROWN FROM 204BN IN 2005 TO 842BN IN H CREATING NEW REAL PRODUCTIVE ASSETS DIRECT INVESTMENTS DIRECT INVESTMENTS TARGET OF 15BN BY 2020 TO DATE: 10BN REFORM OF THE WELFARE STATE BEVERIDGE 2.0 UK DEFINED CONTRIBUTION ASSET GROWTH FROM 24BN IN 2011 TO 50BN IN H TECHNOLOGICAL INNOVATION DIGITAL BUSINESS AND CONSUMER SOLUTIONS LOW COST OPERATING MODELS (BACK END) CONSUMER ENGAGEMENT MODELS (FRONT END) PROVIDING TODAY S CAPITAL INVESTING DIRECTLY OR THROUGH PARTNERSHIP PRECISION BUILT HOUSING SME DEBT AND EQUITY FINANCING LONG TERM INFRASTRUCTURE INVESTMENT DRIVING SUSTAINABLE EARNINGS AND DIVIDEND GROWTH

9 Key financials: strong growth, attractive returns Our ambition is to repeat a similar operating performance in Current FY forecasts has net cash generation at c 1.4bn Consensus* H H NET CASH GENERATION ( m) ,002 1,104 1,256 1, DIVIDEND PAID ( m) NET CASH GENERATION RETAINED ( m) COVERAGE n/a n/a RETURN ON EQUITY (%) n/a EARNINGS PER SHARE (p)

10 De-cluttering our business has increased focus

11 Focused on high returns from a position of strength STRONG GROWTH OPPORTUNITY IN EACH DIVISION UNDERPINNED BY: Balance Sheet Strength Growth Opportunities Strong Shareholder Returns

12 Balance Sheet Mark Gregory & Garvan O Neill

13 Balance Sheet: What we will cover today Solvency II Our thinking Emergence of surplus Ability to support growth and dividends Robust balance sheets H experience downgrade sensitivity Liquidity Key considerations

14 Strong Solvency II capital position CAPITAL POSITION CAPITAL POSITION COVERAGE RATIO 230% 235% 169% 158% 175% 163% OWN FUNDS 13.5bn 14.0bn 13.5bn 14.3bn 12.9bn 13.7bn 14bn 12bn 7.6bn 8.1bn 5.5bn 5.3bn 5.5bn 5.3bn 10bn 8bn 6bn 4bn 5.9bn 5.9bn 8.0bn 9.0bn 7.4bn 8.4bn 2bn 0bn YE 2015 H YE 2015 Proforma ECONOMIC CAPITAL H Proforma SOLVENCY II YE 2015 Shareholder basis H Shareholder basis

15 Solvency II: New business growth and dividends well covered Expected Operating Surplus Existing Business 2016 F bn 1.25 Comments Operating Surplus New business (0.15) Net Surplus 1.10 Dividends paid (0.83) Market Movements Other Movements Total Surplus over year

16 Annuities: investment quickly recouped, limited new business strain FY FORECAST 2016 NEW BUSINESS ANNUITIES CAPITAL POSITION 120m Payback period 4years 80m 40m 0m m - 80m - 120m H LGR margin 10.2% - 160m - 200m

17 New UK Protection business creates a day 1 Solvency II surplus FY FORECAST 2016 NEW BUSINESS UK PROTECTION OTHER BUSINESSES BUSINESS SOLVENCY II APPROACH LGA LGIM LGC

18 Group diversification further enhances capital efficiency FY FORECAST 2016 NEW BUSINESS TOTAL GROUP CAPITAL POSITION 120m Payback period 3 years 80m 40m 0m m - 80m - 120m - 160m

19 Beyond 2016: delivering new business growth and progressive dividend policy in a Solvency II world In-force insurance business: substantial, long term, surplus releases New business: investment quickly recouped, limited strain LGIM and LGC: growing contribution as asset base increases Target to deliver progressive growth in Solvency II net surplus (mid to high single digit %) New business growth and progressive dividend policy both being delivered in a Solvency II world

20 Strong Solvency II and IFRS balance sheet IFRS FY 2015 bn H bn Net Equity SOLVENCY II Surplus* SOLVENCY II CAPITAL* H bn Core Tier 1 (Equity) 11.0 Other Tier 1 (Debt) 0.6 Tier 2 (Debt) 2.2 Deductions (0.1) Eligible Own Funds 13.7 Capital requirement 8.4 Surplus 5.3

21 Debt profile HYBRID DEBT REDEMPTION PROFILE MOODY S ADJUSTED LEVERAGE RATIO BELOW 30% IN LONG TERM

22 H experience and management actions 2016 ECONOMIC INDICATORS 300% Swap Curve Levels YTD Barclays Sterling Corporate 10 to 15 Avg OAS % % 0% % 0.0% -5.0% -10.0% -15.0% -20.0% YTD USD vs GBP FX Moves 20% 10% 0% -10% -20% YTD FTSE 100 Total Returns

23 Balance sheet sensitivity scenario: downgrade event Sector H Group Exposure ( bn) AAA AA A BBB BB or below Total Other bn % Sovereigns Banks Other Financial Services/Insurance Utilities Consumer Goods & Healthcare Others 1 1 Others Total bn % Bonds downgrade stress: 3 notch downgrade on 20% of bonds Solvency II impact ( bn) (0.8) Coverage ratio impact (%) (9)

24 Monitoring liquidity in the Group 4 CONSIDERATIONS Current position Keeping it topped up Hygiene FREE LIQUIDITY INTERNAL CASH GENERATION FOR DIVIDEND SII SURPLUS EMERGING - CASH IFRS NEAR CASH

25 Risk Management Simon Gadd & Anton Eser

26 Risk Management: What we will cover today Group Risk function Risk profile Managing Risk Annuity Portfolio management Investment philosophy and process Current portfolio Role and responsibilities Risk types SCR exposure ALM risks Liquidity risk management Longevity Mortality and morbidity Monitoring the environment Global Fixed Income Real Assets Long term themes Sector and regional allocation Bottom-up credit research Split by sector, credit rating and domicile

27 Role of Risk Management Group CRO Market Risk Credit Risk Insurance Risk Operational Risk Conduct Risk Strategic Risk Emerging Risk LGR LGI LGC LGIM Savings

28 Risk Profile RISK TYPES CATEGORIES APPETITE DIVISION SCR RISK EXPOSURE Equity, spread and property MARKET 3 CREDIT Interest rates and inflation Currency Bond default Property lending counterparties Banks & financial instruments Reinsurance counterparties Longevity, mortality & morbidity INSURANCE Life catastrophe Persistency/ expense LIQUIDITY Contingent events OPERATIONAL & CONDUCT People, process, systems, events

29 Market risk CASHFLOW MATCHING -3,000-2,000-1, ,000 2,000 3,000 4,

30 Longevity, mortality and morbidity PRODUCT 2015 CLAIMS UK Workplace Protection US Term Assurance Retail protection - Life Retail protection - Critical Illness Retail protection - Terminal Illness

31 Continuing to monitor the environment

32 Annuity Portfolio Management Draws on resources across Public and Private credit Global Fixed Income Real Assets Other Euro credit US Credit Global fixed income AUM 125bn Private Real Credit Estate Sterling credit

33 Annuity Portfolio Management Ensure stable through-the-cycle returns Global fixed income AUM 125bn

34 Investment philosophy and process Long term themes Bottom-up credit research Global fixed income AUM 125bn Macro-thematic investment process provides guidance for top-down positioning and bottom-up stock selection Long-term strategic themes Risk allocated by sector and region Fundamental credit analysis

35 Current portfolio HIGHLY DIVERSIFIED PUBLIC AND PRIVATE CREDIT PORTFOLIOS* SECTOR PUBLIC m PRIVATE m TOTAL m TOTAL % Sovereigns, Supras and Sub-Sovereigns 8,765 8, Banks - Senior 2,064 2, Subordinated Financial Services 3,301 3, Insurance Utilities 7,281 7, Consumer Services and Goods 4,357 4, Health Care 1,946 1, Technology and Telecoms 3,048 3, Industrials 2,979 2, Oil and Gas 2,336 2, Property 1,891 4,200 6, Asset backed securities 1,314 1, Infrastructure / PFI / Social housing 433 1,196 1, Secured Bonds , Whole Business Securitised Lifetime mortgage loans CDOs** 1,102 1, Other*** Total m 44,676 6,189 50, Total % By Credit Rating By Domicile

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37 Legal & General Insurance Bernie Hickman & John Hyde

38 Legal & General Insurance: What we will cover today Overview Key financials Digital innovation Shared expertise Summary Internationalising LGI by leveraging UK expertise to the US & beyond Cash and profits rebased Capital contribution from Retail Protection Retail Protection competitive advantages Evidence of benefits of digital Acceleration of growth in the US Delivering growth

39 Internationalising LGI by leveraging UK expertise to the US & beyond HY 16 OPERATING PROFIT CONTRIBUTION 1 UK & US PROTECTION GROSS PREMIUM Combined MARKET SHARE across UK RP, UK GP and US total term converting all markets to $ OVERVIEW OF LEGAL & GENERAL INSURANCE CUSTOMER MARKETS CUSTOMER NEEDS COVERED: LIFE INSURANCE, CRITICAL ILLNESS COVER, INCOME PROTECTION

40 Cash and profits rebased; Important capital contribution from Retail Protection FINANCIAL HIGHLIGHTS H H FY 2015 UK PROTECTION 2016 F OPERATING PROFIT

41 Digital innovation has created Retail Protection competitive advantages STRONG & DIVERSE DISTRIBUTION* 100% 80% 60% 40% 20% 0% EXCELLENT POINT OF SALE DECISION RATES +21% 80% 59%

42 Low cost, scalable business model REDUCING REINSURANCE PREMIUMS REFLECTING RISK MANAGEMENT EXCELLENCE LOW IN-FORCE UNIT COSTS ( ) H1 2016

43 Our shared expertise will accelerate growth in the US LEGAL & GENERAL BUSINESSES ARE WELL ESTABLISHED AND INTEGRATED SIGNIFICANT OPPORTUNITY FOR MARKET GROWTH US INDIVIDUAL TERM MARKET* Legal & General LGR America Legal & General America LGIM America APE $2,236m Rest of Market LEGAL & GENERAL AMERICA 1m policyholders; $1.2bn GWP Provides admin, payment services and a balance sheet for LGRA and back office support for LGIMA LGIMA is an asset manager for LGA DIGITAL DIRECT OPPORTUNITY c75% of US consumers research insurance online** but only 5% buy online** Fully digital life insurance currently under-developed Digital transformation is underway

44 Delivering growth through a diverse, digital and global insurance division UK RETAIL PROTECTION UK GROUP PROTECTION LEAD & LEVERAGE REFOCUS & REBUILD DIGITISATION & DISTRIBUTION EXPERTISE US PROTECTION DIGITISE & DIVERSIFY UK, US & BEYOND

45 General Insurance: New distribution agreements to deliver premiums growth FINANCIAL HIGHLIGHTS H H FY 2015 Global fixed income AUM 125bn GROSS WRITTEN PREMIUMS

46 Legal & General Group plc Capital Markets Event December 2016

47 Our unique investment business model: capturing maximum value LGR 51BN LGIM 842BN Early stage investment Development Asset creation Ownership Management LGC 6BN Delivering economically and socially valuable solutions to benefit customers, investors and society LGIM LGR LGC The illiquidity of our liabilities and our asset expertise allows us to create unique investment opportunities

48 Legal & General Investment Management Mark Zinkula & Aaron Meder

49 Legal & General Investment Management: What we will cover today What we deliver The growth opportunity Diversifying our approach Core strength in UK DB Opportunities in DC and retail Our global expansion Consistent strong financial results Outperforming our peers Well placed for future growth Gaining market share Strong clientfocused culture Investment excellence Adapting our solutions approach across channels and regions Largest UK DB pension asset manager Outcome orientated DB pensions solutions journey with our clients 15% DC market share Strong DC client growth Repositioning the retail business Expanding internationally Continued strong growth in US business

50 Revenue & Expenses ( m) C/I Ratio Consistent strong financial results REVENUE GROWTH WITH A STEADY MARGIN Revenue growth 13% % 80% 60% 40% 20% 0% FINANCIAL HIGHLIGHTS H FY 2015 FY 2010 CAGR % Operating profit ( m)* % Total revenue ( m) % Total expenses ( m) (179) (335) (172) 14% Closing AUM ( bn) % International AUM ( bn) % DC AUM ( bn) % Retail AUM ( bn) % Cost:income ratio %

51 Outperforming our peers AUM TREND REVENUE TREND PROFIT TREND NET FLOWS TREND % 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0%

52 $tr bn Well positioned for future growth STRONG GROWTH AGAINST SLOWING GLOBAL AUM STRUCTURALLY WELL POSITIONED TO CAPTURE FUTURE GROWTH % LGIM growth 21% Global growth % 43 13% % 7% Alternatives Active specialities Solutions Index Active core Global AUM 23% 8% 51% 42% LGIM AUM 2% 9% 45% 38% % 6%

53 Diversifying solutions approach across channels and regions 1. CULTURE & CLIENT SERVICE 2. INVESTMENT EXCELLENCE 3. SOLUTIONS APPROACH 55% 88% 46% Core strength in pensions Diversify by channel (UK Ext AUM bn) Diversify by region (Global AUM bn) UK (82%) 100 US (12%) Gulf & Asia (3%) 690 Europe (3%) 11% of UK Ext AUM in DC & Retail 18% of Global AUM is international

54 1. Culture & client service: putting our clients first Strength and depth in our client teams Established long term relationships Consistently high client service scores % 90% % TOP QUARTILE % TOP QUARTILE

55 2. Investment excellence: generating strong performance Percentage of funds outperforming 1 Year 3 Years 5 Years Index Within fund specific tracking target 97% 100% 98% Active Fixed Income Above benchmark 82% 88% 79% Active Equity Above benchmark 40% 89% 89% Property Above benchmark 60% 78% 78% Active LDI Above liability benchmark 90% 100% n/a Multi-Asset Above benchmark 85% 100% n/a 88% Average active outperformance over three years

56 3. Solutions approach: investment tailored to our clients objectives Objective driven investment solutions GROWTH LGIM - 842bn of assets under management* MATCHING Index 300bn Active Equity 8bn Active Fixed Income (incl. LGR annuity assets) 126bn Solutions 389bn Real Assets 18bn L&G buy-in & longevity insurance Transitions c 40bn p.a. Design Manage Execute

57 Core strength in UK Defined Benefit pensions UK DB PENSION SOLUTIONS JOURNEY Funding level 62% Equities Credit Gilts DGFs Smart Beta Multi-Strat Credit LDI with leverage DGFs Buy and Maintain Infrastructure / Real Assets LDI (13% Growth rate ) Buy-out c. 2.1trn buy-out liabilities Time MARKET BENCHMARK OUTCOME ORIENTATED SELF SUFFICIENCY INSURANCE 32% 44% 15bn+ 3,000 Market share: Largest UK DB pension asset manager Market share: Largest UK LDI manager Our commitment to invest in real assets Pension schemes: we pay over 1m pensions p.a.

58 Continued growth in DC pensions and a repositioned Retail business DC AUM and AUA growth ( bn) DC client growth Retail AUM ( bn) AUM growth 18% H DC Assets DC AUA H DC schemes DC customers (' 000s) 15% 12% 80% UK DC Market share Growth forecast for UK DC market Projected DC AUM in Bundled by 2025 c7,000 Pensions and administration services to schemes Top 5 Top 10 Net retail sales per quarter Total Retail AUM

59 Successfully expanding internationally with growth in all regions US AUM ( bn) and client growth Non US international AUM ( bn) H Index Fixed Income/Solutions Clients US net flows ( bn) Non US international net flows ( bn) H1 2016

60 Key priorities: our strategic markets account for over c 19trn of AUM c 0.3trn c 1.6trn c 1trn c 16trn

61 Legal & General Capital Paul Stanworth & Laura Mason

62 Legal & General Capital: What we will cover today What we do What we deliver The growth opportunity The LGC platform Our future Our purpose Our processes New asset classes Sources of profit Synergies with the Group Flow of assets Size of the UK Funding gap Which sectors we focus on Our portfolio Our team Our partners Our approval processes Multiple sources of profit Leading business position in housing and regeneration

63 Overview What we do How we do it Acquire asset Partner Develop Sell Internal External

64 What we have achieved so far

65 Balancing cash generation and profit delivery H H FINANCIAL HIGHLIGHTS Direct Investments Traded Treasury TOTAL Direct Investments Traded Treasury TOTAL YOY GROWTH (%) 778 3, ,781 1,064 3,833 1,021 5,918 24% % 3 0 (7) (4) (17) (3) %

66 Scaling up opportunities LGC ASSET EXPOSURE (%) Strategic investment in direct investments 3% 17% 9% 5.9bn* 6% 65% Long term returns

67 UK Real Asset opportunity LONG TERM CAPITAL FUNDING REQUIREMENT Pension Funds 1.3trn Housing 150bn Insurance Funds Sovereign Wealth Funds 900bn 4.8trn Finance Gap Regeneration Clean Energy Transport 100bn 40bn 90bn REDUCED CAPACITY SME Finance 125bn Banks Governments

68 Delivering into global asset shift Allocations into Real Assets by Investor Type

69 Strong business model

70 Delivered solutions in every sector HOUSING SME FINANCE Idea Delivery Idea Delivery INFRASTRUCTURE INFRASTRUCTURE Idea Delivery Idea Delivery

71 Top Direct Investments Counterparty Sector Year of investment Book value* m

72 Experienced team, strong corporate governance Dedicated Specialist Investors All transactions LGC Board Approval Investment team MD approval LGC CRO + 3 Energy + 3 Property + 4 Asset Management + 6 Housing + 2 Construction Group Exec Approval CEO approval (GCC) Group CRO + 2 Financial Services Support + 10 Financial Accounting + 3 Actuarial + 7 Back Office + Group Legal + Group Risk Group Board Group Board Group Risk Committee Large transactions

73 Clear synergies with the L&G Group Example: Central Cardiff mixed-use redevelopment scheme Sep LGC LGR 3 LGC LGIM 2017 and beyond 4 5 LGIM LGC LGR LGIM

74 Creating multiple sources of profit growth Multi-tenure Housing business Top 10 UK Housing Provider Leading Infrastructure Business Leading investment in 10 UK Cities New Generation Energy business Generate 5% UK clean energy Leading SME Finance business Drive 10bn SME investment

75 Legal & General Retirement Kerrigan Procter & Chris Knight

76 Legal & General Retirement: What we will cover today What we do What we deliver The growth opportunity The impact of Solvency II How we have responded to Solvency II Our global expansion Our history Our markets Our competitive advantages 8 sources of profit Profit growth Size of the UK PRT opportunity Our unique positioning to capture this opportunity Solvency II new business strain Solvency II value margin Longevity Reinsurance Asset management and asset sourcing Our global reinsurance hub L&G Re US expansion

77 Helping customers achieve financial security in retirement MARKET LEADING RETIREMENT BUSINESS Operating Profit ( m) H FY 2015 Legal & General Retirement (LGR) OUR MARKETS ABOUT LGR COMPETITIVE Share ADVANTAGES GLOBAL PENSION RISK TRANSFER Entry 1987 UK INDIVIDUAL ANNUITIES Entry 1997 UK LIFETIME MORTGAGES Entry % 1 UK only 7% 26% BALANCE SHEET SCALE TO SELF-FUND NEW BUSINESS GROWTH 30 YEARS OF LONGEVITY EXPERTISE AND DATA GROUP SYNERGIES RELSTIONSHIPS WITH ALMOST 50% OF UK PRIVATE SECTOR DB PENSION CLIENTS

78 Delivering 8 sources of profit and record profit growth SOURCES OF PROFIT OPERATING PROFIT 32% CAGR FY12-FY15 (1) Back Book for Cash & Capital (2) Back Book Acquisitions (3) UK Capital- Efficient Front Book (4) Longevity Insurance (5) US Pension Risk Transfer (6) Global Reinsurance Hub (7) Individual Retirement (8) Lifetime Mortgages 281m 310m 428m 641m** 406m H LGR UK PRT MARKET SHARE ASSET GROWTH 14% CAGR FY12-HY16

79 UK PRT: a growth opportunity SIGNIFICANT DEMAND FOR PRT SOLUTIONS L&G UK PRT MARKET SHARE OF 27% SINCE trn UK DB liabilities 1, only 5% 2 transacted to date 2/3 of large pension plans plan to use PRT in the next 5 years 3 >1,000 pension plans overfunded on an s179 basis prime for PRT 4 Total UK pension scheme exposure to LDI 741bn 5 LEGAL & GENERAL INVESTMENT MANAGEMENT Index Active Fixed LDI & multiasset funds Longevity insurance Buy-in Buy-out Index LGIM ASSETS LEGAL & GENERAL RETIREMENT LGR LIABILITIES bn ( 2.5bn) ( 1.1bn)

80 Financially attractive business IFRS NBS SOLVENCY II NBS = LOW TO MID SINGLE DIGIT TYPICAL PRT DEAL Premium minus Best Estimate New Business Surplus Old Solvency 1 model Longevity reinsurance Higher quality asset portfolio New Capital Efficient model EEV VERSUS SOLVENCY MARGIN

81 Superior longevity science intellectual property LONGEVITY EXPERTISE ABOUT LGR COMPETITIVE ADVANTAGE DEDICATED TEAM OF 25 EXPERTS PRT LONGEVITY DATA FOR 16.2M PERSON YEARS Total Years >30 # lives 4.7m # person years in last 5 years 16.2m MARKET LEADING PRT LONGEVITY EXPERTS EXTENSIVE LINKS TO RESEARCH STANDARDISED MORTALITY RATIO, ENGLAND & WALES, TREND 1 ACTUAL VERSUS EXPECTED EXPERIENCE CURRENTLY POSITIVE Blip or trend?

82 Actively managing our exposure through reinsurance IN-FORCE LONGEVITY EXPOSURE AS AT H SUFFICIENT CAPACITY Asset x2 Immediate Annuity longevity x6 x1 x1 x3 x2 Deferred Annuity longevity EXTENSIVE AGREEMENTS IN PLACE Longevity Asset

83 Robust asset portfolio 51BN LGR ASSET PORTFOLIO AS AT H with high sectorial diversification SECTORAL ANALYSIS AS AT H BB or Other below assets AAA BBB By Credit Rating AA 51bn LGR asset portfolio A By Domicile

84 Direct Investments delivering enhanced value LEGAL AND GENERAL DIRECT INVESTMENTS DI PORTFOLIO - 8.2bn (AS AT SEPT 2016) CHARACTERISTIC REQUIREMENTS

85 High quality Direct Investment portfolio PORTFOLIO STATISTICS (AS AT SEPT 2016) DI PORTFOLIO ( MV SEPT 2016 ) * 38% 5% 5% 22% AAA AA A BBB 31% Sub IG Asset Classification Counterparty Sector % of Portfolio Internal Rating Term to Maturity Commentary

86 Investing long term money to grow the UK economy

87 Investing long term money to grow the UK economy

88 Lifetime mortgages providing another important source of direct investments HUGE GROWTH OPPORTUNITY PRUDENT LENDING CRITERIA

89 Replicating our model globally GLOBAL OPPORTUNITY USA 2 $3.2trn, only 4% transacted to date OUR OPERATIONS LGR AMERICA EXECUTING ON THE OPPORTUNITY Canada, Netherlands & Other European 1 $2trn L&G RE

90 Conclusion Nigel Wilson

91 Conclusion

92

93 Legal & General Group plc Capital Markets Event December 2016

94 Appendix 1: Group dividend policy DIVIDEND 13.40p 11.25p 9.30p 7.65p 6.40p 4.74p 5.69p 6.90p 8.35p 9.95p 1.66p 1.96p 2.40p 2.90p 3.45p 4.00p H LEGAL & GENERAL GROUP PLC HALF-YEAR RESULTS AUGUST 2016