L&G ups dividend after strong year

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Legal & General yesterday proclaimed its results for 2010 "excellent" and said it stood to benefit from the Government's austerity measures as more people look to save money to safeguard their future.

Operating profits from savings products increased 130 per cent to £115m on increased demand for private pensions – and as customers invested money to escape paltry bank interest rates.

However, L&G's UK general insurance business made a loss of £8m after December's snow caused a spike in claims.

Group pre-tax profits rose 2 per cent to £1.1 billion in 2010, on sales up 28 per cent to £1.8bn. The company unveiled a 25 per cent increase in the final dividend payment to shareholders.