Legal & General profit up 18%

British insurer Legal & General posted a forecast-beating 18% rise in first-half operating profit yesterday, helped by strong performance in the bulk annuity corporate pensions market, sending its shares up over 3%.

Life insurers have looked to the bulk annuity market for new business as personal annuity sales dwindle following British reforms to tax rules for pension savers which give retirees more freedom over what to do with their pension pots.

Bulk annuity business involves insurers taking on the risk of all or part of company defined-benefit, or final-salary, pension schemes.