L&G beats profit forecasts as investment arm outperforms

Life insurer Legal & General (L&G) posted better-than-expected first-half results on Wednesday, helped by strong performance at its investment management and international divisions.

L&G made a pre-tax operating profit of £523m in the six months to 30 June, down from £542m a year earlier.

Analysts had expected a £508m profit, according to the average of 13 forecasts collected by the company.

Britain's fourth largest insurer said Legal & General Investment Management (LGIM) delivered a record half-year operating profit of £117m, up from £98m in the corresponding six months last year.

Funds under management grew 13% to £362bn, up from £320bn in H1 2010, while net cash generation improved by 30% to £91m.

Worldwide sales were up 4% to £920m.

Group CEO Tim Breedon (pictured) said: "We remain confident in our business model and strategy. Our leading market positions in UK savings, annuities, protection and asset management are delivering healthy returns for shareholders.

"Sales volumes continue to grow, and we are developing attractive new businesses both in the UK and internationally."

Due to the better-than-forecast results, L&G raised its shareholder payout by a quarter to 1.66p per share.