Betting the house

7 March 2018 By Aimee Donnellan Follow @aimeedonnellan

A roaring retirement business helped the British insurer boost operating profit by nearly a third to 2.1 bln pounds in 2017. More than rivals, L&G depends on a growing UK economy and its ability to buy pools of pension funds others don’t want. Investors still need convincing.

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Legal & General on March 7 reported operating profit of 2.1 billion pounds for 2017, up 32 percent.

The British insurer benefited from lower-than-expected life expectancy among its customers, which enabled it to release 332 million pounds from its reserves. It also booked a 254 million pound benefit from the reduction in U.S. corporate taxes.

L&G’s full-year dividend will be 15.35 pence per share, up 7 percent.

Chief Executive Nigel Wilson said: “Our shareholders are enjoying terrific EPS and RoE growth, while our ‘inclusive capitalism’ model ensures customers and society also benefit.”

L&G shares were up 1.2 percent at 261 pence by 0930 GMT on March 7.

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