LONDON (Reuters) -Legal & General reported a 1% rise in first-half core operating profit to 849 million pounds ($1.08 billion) on Wednesday, exceeding analyst expectations, following record sales of individual annuities over the period.
The British life insurer and asset manager, which is currently in the throes of a major business overhaul led by newly-installed CEO Antonio Simoes, sold 1.2 billion pounds of individual annuities in the first half, more than double the previous year.
Analysts had predicted operating profit of 834 million pounds, according to a company-compiled consensus forecast.
L&G said it continued to expect 2024 core operating profit to grow by mid-single digits year-on-year and was pushing ahead with a 200 million pound share buyback.
"We are making clear progress on delivering against our strategy, notably in the establishment of a single asset manager," Simoes said in a statement.
The former HSBC high-flyer, who joined L&G this year, has pledged to merge two of the insurer's key investment units, Legal & General Investment Management (LGIM) and L&G Capital.
However, assets under management at LGIM, one of the biggest investors in the UK stock market, fell 3% to 1.14 trillion pounds.
External net outflows of 28.5 billion pounds reflected adjustments at many UK defined benefit pension schemes over the half-year, as a result of improved funding ratios, L&G said.
Higher interest rates have made individual annuities, which pay pensioners a fixed income for life, more attractive.
L&G said it would pay an interim dividend of six pence per share, up 5% and in line with forecasts.
($1 = 0.7872 pounds)
(Reporting by Carolyn Cohn, editing by Sinead Cruise)
