Daily Insurance Industry News
 
 
Daily Insurance Industry News
Wednesday 18th of July 2018
August 4, 2009

L&G profit tumbles 92%

by Gill Montia

Story link: L&G profit tumbles 92%

Legal & General has cut its interim dividend by 45%, to 1.11p

The UK’s third-largest insurer is responding to a 92% drop in operating profit, which came in at £31 million for the half year.

The result, which compares with operating profit of £391 million in the first six months of 2008, is attributed to “negative investment variances”.

However, new business sales were “robust” during the first half of 2009 and the group has confirmed that it is on target to generate £450 million in net cash over the whole year.

In addition, cost savings of £50 million by the end of the year are on target.

Group chief executive, Tim Breedon, said: “We have made strong progress in improving our net cash generation, strengthening our balance sheet and reducing costs.”

He reiterated: “Our focus remains on capital strength, net cash generation and cost reduction.”

The insurer’s capital surplus stood at £1.9 billion at the end of June.

 

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