LGIM's profit soars to £243m as divi climbs 20%

Legal and General Investment Management (LGIM) has increased its operating profit to £243 million, up from £234 million in 2011.

At a group level, the insurer's group chief executive Nigel Wilson unveiled double digit sales growth for 2012, highlighting the success of its savings, insurance and investment divisions.

LGIM, which offers funds to retail investors, grew its profit over the same stretch, helping to boost the group's operating profit to £1.08 billion, versus £1.05 billion in 2011.

On the back of its strong run, Wilson (pictured) said Legal & General had decided to increase its dividend to shareholders by 20% to 7.65p, up from 6.40p per share.

Wilson said: '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.

'Our 20% increase in dividend is underpinned by 12% EPS [earnings per share] growth and strong cash flow. These in turn reflect growing strengths in execution, operational scale and efficient manufacturing and distribution. We have the capability, the opportunity and focused ambition, to grow earnings further in 2013 and beyond,' he added.

Looking to the future, Wilson said Legal & General planned to develop the opportunities long-term structural changes offered.  It hopes to achieve this by focusing on retirement solutions, international investment management, digital solutions, protection and direct investment.