7th August 2013
Stockbroker the Share Centre has tipped Legal & General as a ‘buy’ following the insurance giants better-than-expected market update this week writes Philip Scott.
L&G reported another strong set of results for the second three months of the year, 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 per cent has resulted in a hike in the interim dividend of 22 per cent, up 2.4p per share.
Sheridan Admans, investment research manager at The Share Centre, says: “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.”
Over the past year L&G’s shares have surged by 54 per cent, and by 36 per cent in the past six months alone.
“As L&G accounts for one pound of every eight generated in revenues by life insurance companies, these results are promising for the sector,” adds Admans