Lender, Legal & General profited in the first half of this year, with net cash generation growing 14% and an interim dividend increase of 25%. Sales worldwide rose to £920 million, a rise of 4%. However, pre-tax profit was only £589 million and operating profits fell rather than rose, due to less new annuity business and higher claims.

Though new business had fallen, there was a strong demand for annuities in the first six months of 2010 due to the retirement age changes. All in all, the company was extremely successful, considering the slow growth of the economy this year, and flat lining at the end of the last year.

For annuity rates, simply take a look at our annuity calculator to find the best rates that suit you.

Savings Increased

Despite the low savings rates set by the Bank of England, profits in the company’s savings department increased from £38 million to £66 million, nearly double the amount. Assets also rose. This shows careful planning on the part of the company and should be used as an example for other companies to follow.

There are stakeholder pensions which you may want to consider. They are often considered the easiest and cheapest option.

Additionally, due to the weak investment market, the investment division lost £49 million compared with £4 million the year before. Despite this setback, in all other areas, the company performed well this year. General insurance profits rose 21%and the ratio of claims to premium income reclaimed its position at 90%, an improvement on the previous 106%.

A Hopeful Outlook

This bodes well for the company and is an example in an industry of turmoil and tough financial decisions. Despite industry pressure and government regulation changes, companies involving annuities, pensions, savings, and the like, are performing adequately, providing hope for the future of the economy.

For more information on other companies, rates and pensions, simply take a look at our pension calculator.

While many companies are still struggling, better outcomes for companies such as Legal & General mean competition will increase as demand for quality service rises and companies find themselves able to cope financially with changes in regulation. Investments continue to be low, but with the increase in all other areas, Legal & General will still profit, and companies that follow suit will as well—bringing the investment market up slowly with the rise in economy. For the consumers, better competition could mean lower prices and a return to normalcy in the near future.

If you would like to speak to an independent financial advisor simply fill in our pension enquiry form.
For the moment, Legal & General is the only company, but it marks a definite change in the outlook.

Read More Pension News

Interested in speaking to a qualified professional about your pension and annuity options? Fill in our quick pension enquiry form

Comments

Leave a comment

Compare Over 50s Plans

If you want to make sure that your affairs are in order when you die, having an Over 50 Plan in place could mean that the burden of funeral costs, bills, and other debts left behind will be taken care off. It's basically an Insurance scheme you put in place to protect those around you from potential financial obligations when you pass on.