Legal & General Increased Profit 10% as Annuity Sales Rise

Legal & General Group Plc (LGEN), the biggest manager of U.K. pension assets, reported a 10 percent increase in first-half profit, boosted by acquisitions and sales of annuity products.

Operating profit climbed to 571 million pounds ($876 million) in the six months to June 30, compared with 518 million pounds a year earlier, the London-based company said today in a statement. That fell short of the 582 million-pound average forecast of 19 analysts provided by the company.

“Bulk annuities and related retirement solutions for corporates are up ten-fold,” Chief Executive Officer Nigel Wilson said in the statement. “We are successfully evolving our strategy from a post-financial crisis focus on cash, to one based on cash plus growth plus selective acquisitions.”

The firm raised its interim dividend 22 percent to 2.40 pence a share, beating analysts’ estimate of 2.28 pence. Net cash generation climbed 23 percent to 500 million pounds, while individual annuity sales jumped 44 percent to 754 million pounds.

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net

To contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.