Shares in the insurer Legal & General (LON:LGEN) rose more than 3% in early trade as it bucked the trend in the sector by posting forecast-busting results.
It appears to have been ahead of the curve by increasing sales of bulk annuities to counter the downturn of individual annuity sales, precipitated by sweeping changes that allow savers greater freedom to do what they want with their retirement pot.
The headline figures were impressive for the usually pedestrian insurance sector with L&G’s operating profit up 18% at £750mln in the first half – some £58mln ahead of consensus City forecasts.
Income investors received a boost as the company raised its half-time dividend by 19% to 3.45p a share.
Chief executive Nigel Wilson said: "Legal & General continues to deliver strong organic growth in the UK and the US from both our developing and established, market leading businesses.
“In addition we are disposing of, or closing non-core businesses and reducing costs in real and nominal terms.”