LONDON, Aug 5 (Reuters) - British insurer Legal & General 's operating profit rose a forecast-beating 18 percentin the first half of its fiscal year, helped by strongperformance in the bulk annuity market, the firm said onWednesday.
Life insurers have looked to the bulk annuity market for newbusiness as individual annuity sales dwindle following Britishpension reform, which give retirees more freedom over what to dowith their pension pots.
Bulk annuity business involves insurers taking on the riskof all or part of company defined benefit, or final salary,pension schemes.
L&G's operating profit rose to 750 million pounds in the sixmonths to the end of June from a year earlier, against aforecast of 692 million pounds in a company-supplied poll.
Legal & General Investment Management's assets undermanagement rose 12 percent from a year earlier to 715 billionpounds. But the asset management arm's AUM dropped by 3 percentover the second quarter.
L&G said it would pay an interim dividend of 3.45 pence ashare, up 19 percent from a year earlier. (Reporting by Carolyn Cohn, editing by Sinead Cruise)
Legal & General (LGEN)
