Legal & General (L&G) has recorded a 7% year-on-year increase in its core operating profit, totalling £918m, as it looks to become a "simpler, more focused" company.

In the six months to 30 June, the financial services provider saw its core operating earnings rise by 11% to 12.15 pence, while its profit before tax jumped by 392% to almost £2bn, which it said reflects a gain on the disposal of its non-retained US business.

In this period, its assets under management totalled £1.2trn, with almost have being held in international assets.

Meanwhile, its institutional retirement division recorded £5.7bn in global pension risk transfer, written or exclusively as at end-July, while its retail division reaches annuities volumes of £1.2bn, withassets under administration increasing by 27% to £128bn.

CEO at L&G, António Simões, stated: "We are making good progress in becoming a simpler, more focused L&G. Core operating profit grew 7%, core operating EPS increased 11%, and we have completed c.£450m of our £1.2bn buyback programme. We have improved dividend cover by earnings and capital generation. We are pleased to confirm a 2% interim dividend increase as we continue to deliver strong and sustainable shareholder returns.”

L&G said it has continued its commercial momentum in the first six months of the year, and it is “well positioned” against its 2028 targets.

These include its institutional retirement and retail divisions are targeting growth of 5%, while its asset management division is on track to hit its operating profit target of £500m and £600m by 2028.

Simões concluded: “Our scale and the connections between our businesses remain a clear competitive advantage, which we are building further through improvements in operating efficiency. We are on track to meet or exceed our strategic targets."

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