News - Distributors
Mortgage Solutions | 14 Mar 2012 | 10:24
Legal & General (L&G) has reported an increase in operating profits for 2011 after a marked rise in its investment management (LGIM) and international divisions.
The UK-based group saw operating profits across its four divisions, which includes risk and savings, increase by 5.4% to £1.056bn, up from £1.002bn the previous year.
Last month, Legal & General Mortgage Club revealed that it returned a substantial increase in mortgage business in 2011, with completed business up 35% comapred to 2010.
Mortgage applications worth £22bn went through the club and completed business was £15.8bn up from £11.6bn in 2010.
L&G said: "We continued to diversify into more specialist areas of the market with 13% growth in high-net-worth protection and 48% growth in direct business."
The group added that, following the CML's forecast of gross mortgage lending dropping from £140bn to £133bn in 2012, it will continue to increase its family protection sales and use its strength in distribution to generate growth from the available market.
"We do anticipate some disruption to the market from regulatory change including gender neutral pricing, RDR, I-E tax changes, but we are taking steps to minimise the associated risks and maximise any potential advantages."
L&G will pay a total dividend for 2011 of 6.4p per share, an increase of 35%.
The group reported that its international business saw a marked increase in operating profit, from £102m in 2010 to £137m last year.
Group CEO Tim Breedon (pictured) said: "L&G had a strong 2011. All four of our operating business divisions - risk, savings, investment management and international - delivered increased sales, cash generation and profits.
"We have significant scale: seven million customers and assets under management of more than £370bn. Our broad product range, diversified distribution and ability to deliver will enable us to grow the business, further enhance shareholder value, and take advantage of the opportunities created in a fast-changing market."
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