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By Carolyn Cohn
Recent actuarial data showing lower than expected lifeexpectancy enables life insurers to set aside less cash forpension payments."People aren't dying quicker ...but (the figures) aren'timproving quite as quickly," Chief Financial Officer Jeff Daviestold a media call.
"We are factoring in a slightly lower life expectancy."
L&G's operating profit rose to 2.1 billion pounds (
Analysts in a company-supplied consensus poll had forecastoperating profit of 1.9 billion pounds.
Barclays analysts said in a note that the insurer had"significant firepower for both organic and inorganicinvestment," as they reiterated their "overweight" rating on thestock.
L&G shares rose 0.66 percent to
L&G is in advanced talks to buy out Patron Capital, itsfellow shareholder in housebuilder Cala Group, in a deal thatvalues the company at more than 500 million pounds, Sky Newsreported on Monday.
"The (Cala) business has performed really well in ourpartnership," Davies said, while declining to comment directlyon the report.
"All options are open - buy, sell, hold."
L&G has also said it wants to buy books of annuity businessclosed to new customers, after taking over a 3 billion poundbook from Dutch insurer Aegon in 2016.
Prudential has put part of its 35 billion poundclosed annuity portfolio up for sale. L&G has previouslyexpressed interest in the portfolio, though industry specialistssay it is unlikely to be a front-runner.
"We will continue to maintain pricing discipline - we see somuch potential out there, we are not pinning anything on aparticular deal," Davies said.
Legal & General Investment Management, one of the largestinvestors in the
L&G said it would pay a total dividend of
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