Legal & General posts 14% H1 profit rise, sees strong full-year

© Reuters. FILE PHOTO: The logo of British insurer Legal & General is seen at its offices in central London, March 17, 2008. REUTERS/Alessia Pierdomenico/File Photo

LONDON (Reuters) -Legal & General posted an above-forecast 14% rise in first-half operating profit on Wednesday due to strong performance across its insurance and asset management units, and said it saw continued strong growth.

Operating profit for the British life insurer came in at 1.08 billion pounds ($1.50 billion), compared with the 999 million pounds forecast by analysts, according to a company-supplied consensus poll.

Insurers have been recovering from pandemic-related hits to their profits.

L&G, which invests in companies such as housebuilder CALA Homes, said it had benefited from a bounce-back in the UK housing market. It also had strong sales of life insurance products such as individual annuities, which provide pensioners with a fixed income.

“We expect to deliver double digit growth in operatingprofit at the full year,” chief executive Nigel Wilson said in a statement.

L&G said it had previously provisioned for 110 million pounds of future COVID-19 related claims, of which around 30 million remained unused at end-June.

Legal & General Investment Management, one of the largest investors in the UK stock market, saw net inflows of 27.4 billion pounds. Its assets under management rose 7% to 1.3 trillion pounds.

L&G said it would pay an interim dividend of 5.18 pence per share, up 5% and above a forecast 5.14 pence.

($1 = 0.7182 pounds)

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