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.

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“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.”