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(Adds analysts, shares, detail, CFO comment)
By Carolyn Cohn
LONDON, Aug 5 (Reuters) - British life insurer Legal &
General blamed the coronavirus pandemic for a 2% fall
in first-half operating profit to 1.13 billion pounds ($1.48
billion), sending its shares lower on Wednesday.
Legal & General, which offers insurance and annuities
products and is a major investor in both companies and markets,
said its life insurance business, particularly in the U.S., was
"adversely impacted" by the pandemic, suffering from increased
claims, Chief Financial Officer Jeff Davies told reporters.
L&G's shares fell 3% to 213.6 pence at 0709 GMT, the worst
performer in the FTSE 100 as investors digested the
numbers, which also included a 14% fall in the insurer's net
release from operations - or net cash generation - to 730
million pounds.
L&G Capital, which invests directly in companies and
includes housebuilder CALA Homes, also saw a 29% drop in
operating profit as business was interrupted by a national
lockdown to contain the spread of the virus.
But analysts at Barclays said the results beat its
expectations, describing L&G as "still a good story" and
maintaining its "overweight" rating on the stock.
"We're very happy with the positioning for the second half,"
Davies said. "We are seeing a recovery in markets."
Legal & General Investment Management, one of the biggest
investors in the UK stock market, saw assets under management
rise 4% to 1.24 trillion pounds.
Legal & General, unlike some other insurers, paid a final
dividend for 2019.
It said it would pay an interim dividend for 2020 of 4.93
pence per share, the same as a year ago.
JP Morgan said the flat dividend came in below analysts'
expectations, and reiterated its "neutral" rating.
($1 = 0.7642 pounds)
($1 = 0.7632 pounds)
(Additional reporting by Muvija M. in Bengaluru, editing by
Sinead Cruise)
