L&G shares rise as it reports 13 per cent increase in profits
Shares in Legal & General (L&G) rose over two per cent this morning as the company reported a 13 per cent increase in pre-tax profits to £592m. Earnings per share rose 13 per cent to 7.82p and dividends per share were increased 22 per cent to 2.40p (release).
L&G said all of its principal business areas reported growth, while net inflows in its asset management division (LGIM) were double that of the same period last year at £8bn.
Yesterday, Morning Wire reported that L&G is one of the big investors talking to the Treasury about funding infrastructure investment. The company is hoping its £151m acquisition of Lucida will add another £1.4bn of annuity assets.
L&G expects future growth to be driven by further internationalisation of LGIM and higher demand for secure retirement solutions in volatile markets alongside a focus on operation efficiency and an effective investment strategy.
Group chief executive Nigel Wilson said:
We are successfully evolving our strategy from a post-financial crisis focus on cash, to one based on cash plus growth plus selective acquisitions. It is based on five macro-trends: increasingly global asset markets, ageing populations, digital lifestyles, welfare reform and bank retrenchment. In each case, we have accelerated growth: by expanding international investment management, providing retirement solutions, growing our digital presence, increasing private protection, and direct investments.
I am excited about the future for Legal & General. In the last six months, earnings per share are up 13% and we have increased dividends per share by 22%. We remain determined to deliver value to shareholders. We are equally determined to deliver value to our millions of customers. With £433bn of assets under management in LGIM, £111bn assets under administration in Savings, and 8 million customers, we have the scale, strength and skill-sets to provide insurance, savings and investment solutions that work for individuals, families, companies and for 'UK plc'.