L&G's H1 profits up 15%

Legal & General’s profit after tax increased 15% in the first half of 2013 amid strong performance that also saw the gross written premium (GWP) for general insurance rise by 10%.

The insurer posted a net profit of £464m in the six months to June, compared with £405m in the equivalent period last year. The COR improved by 18 percentage points to 81% from 99% in H1 2012, while operating profit was £29m, up from £9m in last year’s first half.

The GWP for general insurance rose 10% to £183m from the £166m recorded in H1 2012. Household accounted for £172m, with the rest made up of other business.

Group chief executive Nigel Wilson said: “Legal & General delivered another very strong performance in H1 2013, with double-digit growth in sales, cash, operating profits and profit after tax.

“International assets under management are up 21% to £52bn. Bulk annuities and related retirement solutions for corporates are up ten-fold. We have bought Cofunds, the UK’s largest digital savings platform with £54bn assets under administration.

“The acquisition of Lucida, the UK annuity buy-out company, will add £1.4bn of annuity assets. We have now invested over £4bn in UK infrastructure and direct investments, including in the house builder CALA Homes.

“I am excited about the future for Legal & General. In the last six months, earnings per share are up 13% and we have increased dividends per share by 22%. We remain determined to deliver value to shareholders. We are equally determined to deliver value to our millions of customers.”