Cedric0718 Sep 2010 23:01
Taken from Reuters news:
Legal & General sees scope for dividend hikes - CFO
Tue Sep 14, 2010 11:42am BST
LONDON (Reuters) - Life insurer Legal & General (LGEN.L) has significant scope to raise its dividend, helped by buoyant cash flows, its chief financial officer Nigel Wilson said on Tuesday.
"We see substantial headroom for dividend increases going forward," Wilson told a conference organised by Keefe, Bruyette & Woods in London.
"We have excess dividend cover at the moment," he added.
Wilson said that a 20 percent increase in Legal & General's interim dividend, unveiled in August following a cut the previous year, could have been bigger.
"With hindsight, we think that we should have raised it a bit more," he told the conference.
Wilson also said Legal & General was open to acquisitions, prioritising fund management and savings businesses.
"We're not averse to doing M&A transactions. If there are opportunities, we will look at them," he said.
"There are areas where we'd like to grow. We'd like to make LGIM (the asset management arm) bigger, and we're subscale in the savings business."
(Reporting by Myles Neligan, Editing by Rosalba O'Brien)