Life insurance and pensions group Legal and General hiked its interim dividend by almost a fifth as the group expressed 'resilience' amidst tough conditions.The half-year dividend per share was raised by 18% from 1.66p to 1.96p, while basic earnings per shares rose 14% from 6.13p to 6.96p. Pre-tax profit in the six months to June 30th increased by 11% from £471m to £525m."The board's confidence in the strength of Legal & General's financial performance, as demonstrated by both continuing substantial cash generation and a strong balance sheet, underpins the decision to recommend an increase of 18% in the interim dividend," the firm said on Tuesday morning.The group said that its businesses were resilient to the current economic conditions, with operations cash generation from operating divisions up 2% to £459m. However, group capital and financing operating profit was hit by a fall in the assumed return on equities from 7.5% to 5.8% and a higher proportion of assets held in cash during the first half.In investment management (otherwise known as LGIM), total revenue increased by 7% to £219m, while operating profit edged 1.7% higher to £119m. Assets under management (AuM) grew 3% to £381bn."Our financial and strategic discipline creates confidence in complex and chaotic markets. In spite of economic conditions, we continue to grow. LGIM achieved strong net flows of £4bn, UK protection gross premiums grew by 9% to £672m, and we also achieved 13% growth in US gross premiums to $456m," said Chief Executive Nigel Wilson."We have strong businesses, and social and economic challenges bring opportunities which we intend to pursue at a faster pace. We maintain shareholder assets of over £6bn, and a strong capital surplus of £3.8bn. Our balance sheet strength and robust financial discipline provides Legal & General with options to accelerate our evolution, delivering further value for customers and shareholders," Wilson said.Looking ahead, the group reiterated its "resilience" in volatile conditions and said that its remains confident that it can continue to grow. "Business momentum from the first half year has continued in July, with several BPA [bulk purchase annuity] schemes completed and investment management mandates gained."BC
Last checked at 
