Insurer Legal & General benefited from a return in consumer confidence today as it reported a sharp rise in new business in the UK.

The London-based group said new business volumes for the second quarter were 27% higher than a year earlier, adding its outlook appeared "encouraging" as individual investors return to bonds and equities for long-term savings.

However, operating profits fell to £292 million in the six months to June 30 - down from £365 million previously - after the company took a previously announced provision against its customers living longer.

Legal & General was boosted by a rise in its new life and pensions business, which increased by 20% to £339 million in the first half.

Chief executive David Prosser said: "Legal & General is one of the strongest companies in the sector and is well positioned to benefit from the opportunities the market offers.

"We have had a good first six months - we believe that once again we have taken market share profitably and we expect to continue to do so."

Legal & General has 4.5 million customers and employs more than 8,800 staff.

Thursday July 29, 2004