Overseas is where the growth lies

first_img Read This NextRicky Schroder Calls Foo Fighters’ Dave Grohl ‘Ignorant Punk’ forThe WrapCNN’s Brian Stelter Draws Criticism for Asking Jen Psaki: ‘What Does theThe WrapDid Donald Trump Wear His Pants Backwards? Kriss Kross Memes Have AlreadyThe WrapPink Floyd’s Roger Waters Denies Zuckerberg’s Request to Use Song in Ad:The WrapHarvey Weinstein to Be Extradited to California to Face Sexual AssaultThe Wrap2 HFPA Members Resign Citing a Culture of ‘Corruption and Verbal Abuse’The Wrap’The View’: Meghan McCain Calls VP Kamala Harris a ‘Moron’ for BorderThe Wrap’Black Widow’ First Reactions: ‘This Is Like the MCU’s Bond Movie’The Wrap’Small Axe’: Behind the Music Everyone Grooved On in Steve McQueen’sThe Wrap whatsapp Overseas is where the growth lies KCS-content Show Comments ▼ LEGAL & General’s 24 per cent dividend hike and £1bn in annual profits are a sign of just how far the insurer has come over the past two years. In early 2009, concerns over the insurer’s capital requirements caused shares to drop 30 per cent in a single day. The dividend was halved to bump up reserves, and chief executive Tim Breedon spent most of the year denying that a rights issue was imminent.Twenty-four months later and Breedon is back in investors’ good books with yesterday’s dividend announcement, though guidance on future increases would have been even more welcome. L&G’s dependence on its core UK market also seems to have paid off – Breedon attributed the 28 per cent rise in group sales to long-term planning by prudent policy holders, and the figures support his claims. Profits on saving products were up 130 per cent to £115m, largely credited to an increase in demand for private pensions. But emerging markets growth has contributed too, with a successful Indian launch yielding more than 130,000 policy sales in its first year of trading. With China next on the list L&G is looking to consolidate international growth, and continues to diversify by growing funds in its investment management portfolio. Some brokers remain cautious, preferring Aviva’s more established international presence and steady dividend record. But today’s dip in share price can be put down to continued market uncertainty, and gives buyers an excellent opening to get in on future distributions. Share whatsapp Thursday 17 March 2011 8:59 pm Tags: NULLlast_img