British insurer Legal & General Group Plc (LGEN.L) Wednesday announced a 20 percent increase in final dividend, after posting a higher profit for full year 2012. The results were benefited by a sharp rise in revenues helped by higher investment return. All of its divisions improved operating profit, with total profit from the divisions up 5 percent year-over-year.
Nigel Wilson, chief executive of the company stated, "Legal & General's double-digit sales growth in 2012 broke records, again demonstrating that customers value our insurance, savings and investment propositions. An uncertain, sluggish economy has had minimal impact."
Wilson noted that the company has the capability, the opportunity and focused ambition to grow earnings further in 2013 and beyond.
Announcing its preliminary results, the company said its profit before tax attributable to equity holders, on an IFRS basis, increased to 1.04 billion pounds from 953 million pounds in the prior year. The firm has restated its prior-year figures.
Meanwhile, on European Embedded Value or EEV basis, pre-tax profit fell to 835 million pounds, from 1.33 billion pounds in 2011.
IFRS earnings per share rose to 13.66 pence from 12.22 pence per share a year earlier.
Operating profit for the year grew to 1.09 billion pounds from 1.05 billion pounds in the previous year. The company said all divisions improved operating profit, with total profit from the divisions up 5 percent year-over-year to 1.12 billion pounds.
Total revenues surged to 34.98 billion pounds from 18.32 billion pounds last year. Total annual premium equivalent or APE sales grew 15 percent from last year. Sales from UK Protection increased 25 percent and Individual annuities generated 26 percent growth in sales.
Investment return climbed to 28.83 billion pounds from 12.14 billion pounds a year ago. Meanwhile, net premiums earned declined to 4.93 billion pounds from 5.08 billion pounds in the preceding year.
The board has recommended a final dividend of 5.69 pence per share, up 20 percent from last year. This will bring the full year dividend to 7.65 pence, compared to 6.40 pence paid in 2011.
LGEN.L is currently trading at 163.7 pence, up 1 pence or 0.61 percent, on a volume of 5.99 million shares on the LSE.
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