Investors recommended to ‘buy' as L&G reports strong Q2 results

As Legal & General (L&G) reports positive Q2 results Sheridan Admans, investment research manager at The Share Centre, explains what they mean for investors.
 
"This morning L&G reported another strong set of results that didn't disappoint investors, with profits beating forecasts at the interim point. Dividend growth has been strong in recent years and investors will be pleased that earnings growth of 13% has resulted in a hike in the interim dividend of 22%, up 2.4p per share.
 
"L&G has a strong balance sheet and has proven its resilience in these challenging markets. We recommend investors ‘buy' L&G as we believe it will continue to take advantage of UK demographics and overseas opportunities. 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.
 
"The Share Centre's Profit Watch UK data shows the performance of the life insurance sector is crucial to the wider index's performance as it accounts for 6.3% of revenues across the FTSE 350. As L&G accounts for one pound of every eight generated in revenues by life insurance companies, these results are promising for the sector."