L&G profits help hike its dividend

LIFE insurance giant Legal & General has delivered half-year profits ahead of expectations and said its high cash generation allowed it to hike its dividend by a quarter yesterday.

It made £523m operating profit, almost three per cent ahead of consensus market expectations and posted £498m cash generation, 19 per cent up on 2010’s level. Its sales rose four per cent to £920m.

LGIM, its fund management arm, saw assets under management hit £362bn in June, £42bn higher than June 2010, as it made a record £117m half-year profit.