Legal & General ups dividend on strong sales

City A.M. Reporter

LIFE insurer Legal & General this morning unveiled a 20 per cent dividend hike, after strong annuity sales helped drive annual profit.

L&G this morning posted an operating profit of £1.09bn, up 3.2 per cent from the previous year and slightly above forecasts, on sales up from £1.8bn to £2.1bn.

The rise was driven in part by strong sales of annuities, which rose 26 per cent to £132m.

As a result, the insurer pledged a total dividend of 7.65p per share, up 20 per cent year on year.

“An uncertain, sluggish economy has had minimal impact,” Nigel Wilson, L&G group chief executive said this morning.

“The more important growth drivers for us are ageing populations, falling state spending on welfare and new long-term investment opportunities as banks retrench. Our expertise, scale and synergies enable us to provide solutions to these challenges, placing us squarely among the beneficiaries from these structural changes.”