LEGAL & General, one of the UK's oldest financial services firms, has weathered the country's worsening economic climate, having declared £2.5bn of dividends since 2020.

The London-headquartered company, which offers pensions, life insurance and investment services, said higher interest rates saw its profits jump eight per cent.

Legal & General, which also operates in the US, yesterday reported operating profit growth of eight per cent, securing £1.16bn in the first half of this year, up from £1.07bn in the same period last year.

Profit after tax also jumped by eight per cent, the equivalent of £90m, to £1.15bn.

The financial services giant boasted that it has continued its 13-year long streak of no defaults.

Meanwhile, the group shrank its net debt costs by 10 per cent, from £120m to £108m in the first six months of the year.

The City titan has, since 2020, also snagged £4.3bn worth of cash generation and £4.1bn of capital generation.

"Our balance sheet is strong and highly resilient, with a solvency ratio of 212 per cent and with 100 per cent of cash flows received from our direct investments," CEO Sir Nigel Wilson said in a statement.

"We are committed to providing financial security for our customers and colleagues in a tough economic climate and remain confident in our ability to grow profits sustainably and at attractive returns over the long term."

(c) 2022 City A.M., source Newspaper