Legal and General hikes divi by more than a third

published 14 March 2012

All four of insurance leviathan Legal and General's operating business divisions delivered increased sales, cash generation and profits in 2011.

Although operating profit in 2011 rose to £1,056m from £1,002m the year before, profit before tax eased to £956m from £1,092m in 2010, below market expectations of £976m. The decline in pre-tax profit was due to the absence this time round of asset related investment variances, which contributed £185m to profits in 2010.

The final dividend has been increased by a whopping 39% to 4.74p per share, meaning the full year dividend rises to 6.40p, up 35% on 2010's payment of 4.75p and well above the 5.94p the market had been expecting.