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Pin to quick picksLegal & General Share News (LGEN)

Share Price Information for Legal & General (LGEN)

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Share Price: 252.80
Bid: 252.50
Ask: 252.70
Change: 4.90 (1.98%)
Spread: 0.20 (0.079%)
Open: 250.20
High: 252.80
Low: 249.30
Prev. Close: 247.90
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Legal & General hikes divi as sales hit record - UPDATE

Wed, 06th Mar 2013 07:03

Legal & General (L&G), the FTSE 100-listed financial services group, hiked its dividend by a fifth after a strong rise in profits and record sales in 2012.The company proposed on Wednesday to pay shareholders a final dividend per share (DPS) of 5.69p, up 20% from the 4.74p paid out in 2011. This brings the full-year DPS to 7.65p, also up 20% from 6.40p previously. The consensus of analysts had expected the firm to pay out a DPS of 7.55p.Analyst Kevin Ryan from Investec said that this was a "bold move given that cash generation was broadly flat and the effects of the Retail Distribution Review remain unknown".L&G, which provides investments, insurance and pensions, said that the "uncertain, sluggish economy has had a minimal impact" on its business, as it reported record annual premium equivalent (APE) sales of £2.11bn, up 15% from the £1.84bn reported the year before. This was helped by a 25% increase in UK Protection, 26% growth Individual Annuities and a 15% sales jump in its biggest division, Savings.Chief Executive Nigel Wilson said that the more important growth drivers for L&G are "ageing populations, falling state spending on welfare and new long-term investment opportunities as banks retrench"."Our expertise, scale and synergies enable us to provide solutions to these challenges, placing us squarely among the beneficiaries from these structural changes."Operating profit rose 3.0% to £1.09bn in 2012, 1.0% ahead of the consensus forecast, however a 12% rise in earnings per share to 13.9p missed estimates by 3.0%. Net cash rose slightly from £846m to £865m over the period, ahead of the £848m forecast.Shares were up 2.52% at 166.8p in afternoon trading on Wednesday.
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