Legal & General beats profit forecast

INSURER Legal & General hiked its dividend today by more than a third, beating analysts’ forecasts, and exceeding the payout it made before an unpopular cut at the height of the 2008 financial crisis.

By The Newsroom

Published 14th Mar 2012, 08:40 BST

L&G, Britain’s fifth-biggest insurer, will pay a total dividend for 2011 of 6.4 pence per share, an increase of 35 per cent, and ahead of the 5.93 pence pencilled in by analysts in a company poll.

The move, which puts the payout above the 5.97 pence L&G paid in 2007 before a sharp cut the following year, came after the company narrowly beat forecasts with a 5.3 per cent rise in 2011 profit.

The company had an operating profit for the year of £1.06bn, up from £1bn in 2010, and ahead of the £1.04bn expected by analysts.

L&G shares closed at 125.3 pence yesterday, valuing the company at about £7.2bn.

Britain