L&G raises dividend by 20% after jump in profits

L&G has reported its IFRS operating profits grew 34% to £542m for the first half of the year, helped by its strong investment and international arms.

This has allowed the insurer to raise its half year dividend by 20% to 1.33p per share.

Worldwide, the group said new business was up 18% to £881m APE2, while L&G Investment Management saw sales soar 50% to £21.2bn compared to £14.2bn in the same period in 2009.

Tim Breedon, group chief executive, says: "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."