Legal and General proves resilient in tough economic markets

As Legal & General (L&G) reports positive half year results Sheridan Admans, investment research manager at The Share Centre, explains what this means for investors.

"This morning, L&G announced figures mainly above market expectations. The group saw 5% growth in operating profits leading to an 18% hike in the interim dividend. Profits were driven by the risk business segment and were supported by the investment management and savings division.

"L&G remains fairly downbeat with regards to the economic challenges facing the industry, both domestically and internationally. However, investors should take some confidence from these results as L&G shows it can deliver in these testing times. The group believe it will be able to continue to grow as it seeks opportunities from social and economic challenges at a faster pace.

"The group has a strong balance sheet and has proven its resilience in these markets. We currently list L&G as a ‘buy' as we believe it will continue to take advantage of UK demographics. The group is well positioned to benefit from an increasing demand for pensions, annuities, protection and savings plans as reliance on the state in years to come remains questionable."