Financial News

  • 7 August 2014, 10:14

L&G Sees Profit Rise On Pension Reforms

Legal & General (L&G) saw its pre-tax profit rise by 7% for the first half of the year.

The life insurance and pensions provider reported a profit of £636m, up from £594m for the same period last year.

The company credited an increase in demand for retirement products and said that Budget reforms to pensions would help boost earnings further.

In March Chancellor George Osborne made changes to allow people to access their pension pots when they turn 55, without having to buy an annuity.

L&G said the reforms would give greater flexibility to retirees as the company develops new products around the changes.

Group chief executive Nigel Wilson said: "These are strong financial results with dividends once again growing over 20% and a return on equity of 17.6%.

"Strong business performance across a well-diversified range of insurance, savings and investment markets underpins consistent earnings quality and dividend growth and enables us to respond positively to the ever changing political and regulatory landscape."

It comes after Sky News last week revealed that L&G is in talks about creating a £500m investment vehicle that will be used to finance major UK urban regeneration projects.

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