L&G hikes dividend, beats revenue

British life insurer Legal & General (L&G) raised its shareholder payout by a quarter after strong growth at its fund management and savings divisions helped it beat first-half profit forecasts.L&G said its pretax operating profit for the first six months fell to 523 million pounds ($852 million) from 542 million pounds a year earlier, weighed by a previously-flagged drop in annuity prices as competitors who quit the market during the credit crisis re-emerged. That was still ahead of the 508 million pounds pencilled in by analysts, according to the average of 13 forecasts collected by the company.“L&G has produced a very steady set of results, which were marginally better on most measures,” analysts at Bank of American Merrill Lynch wrote in a note.  “We believe L&G is now establishing a good track record of delivery.”  L&G has been at the forefront of industry efforts to boost cash generation in an effort to counter investor concerns that life insurers are opaque and consume too much capital.The 175-year old insurer has said it expects to benefit from increased sales in future as the British government gradually reduces current levels of public health and retirement provision. From / Gulf Today