View more on these topics

L&G records £583m profit and boosts dividend

Legal & General recorded a profit before tax of £583m for the first half of 2010 on a European embedded value basis, a significant improvement on the £1bn loss made during the same period last year.

The insurer has also increased its half year dividend by 20 per cent to 1.33p per share up from 1.11p in the first half of 2009, citing strong cash flows and expectations that growth in net cash generation will continue.

The dividend will cost L&G £78m compared to £65m last year.

On an International Financial Reporting Standards basis, the firm made operating profits of £542m up 34 per cent from the £404m recorded for the first half of 2009. It made a profit from ordinary activities before tax of £537m compared with a loss of £143m last year.

Legal & General has also boosted its capital surplus by 73 per cent to £3.3bn compared with £1.9bn in H1 2009.

Group chief executive Tim Breedon says the firm is delivering healthy returns on capital but he believes the outlook for markets is mixed.

He says: “We have delivered £358m against our £600m net cash generation target for the year. Reflecting the continuing combination of healthy net cash generation and a strong capital surplus, we have increased the half year dividend by 20 per cent to 1.33p per share.

“But the outlook for our markets in the second half of 2010 and into 2011 continues to be mixed. We are optimistic about growth prospects in UK savings and annuities, though there is little evidence of recovery in the UK housing market. We continue to see opportunities to export our investment management and bancassurance franchises into international markets.

“At the end of June the group had £3.3bn of capital in excess of our current regulatory capital requirements. This means we are ideally placed to respond to current market and economic uncertainty and to take advantage of the significant opportunities for growth that are emerging.”


3A buyback aims to cut discount

Fund of hedge funds manager 3A is buying back up to 10 per cent of shares in its Altin fund as part of its discount management programme. Altin has traded at a premium to net asset value in the past but between January 4 and July 15, its share price traded at an average discount […]

Towergate Financial appoints new director

Towergate Financial has appointed Dan Russell as director of client proposition. Russell will be responsible for the private client proposition launched by Towergate Financial at the end of 2009.     Reporting to Business Development Director Dan Saulter, Russell will lead the continued development of the proposition including platforms, investment solutions and adviser tools. He will also lead the […]

BNY Mellon hires vice chairman

Curtis Arledge will join BNY Mellon as vice chairman of the corporation and chief executive officer of BNY Mellon Asset Management. Arledge is expected to join the group in the fourth quarter of this year. He was the chief investment officer for the fundamental fixed income portfolios at BlackRock. He has also served as co-head […]

Kent Reliance to transfer assets to bank structure

Kent Reliance Building Society is to transfer its business, assets and liabilities to a new bank to be created out of a restructuring deal with private equity firm J.C. Flowers. The terms of the deal, announced today, will see a new industrial and provident society set up called Kent Reliance Provident Society Limited. The UK’s […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm