Legal & General (LGEN.L) today exceeded market expectations for its first half results declaring pre tax profits of £523 million for the six months to 30 June 2011.

While the declared profit of £523 million was down on the £542 million declared for the same period in 2010, it was higher than the City had been expecting, as analysts had originally forecasted profits of around £508 million for the group.

L&G’s interim dividend was raised 25 per cent to 1.66 pence per share, up from 1.33 pence per share declared at this point last year. The payment of the dividend confirmed today is due to be made on 3 October 2011.

Tim Breedon, chief executive of the group, said the insurer had witnessed exceptional growth at its investment management and international businesses during the six-month period.

He explained, ‘Continued strong cash generation and confidence in our future prospects has led the board to increase the interim dividend by a further 25 per cent.

‘We remain confident in our business model and strategy. Our leading market positions in UK savings, annuities, protection and asset management are delivery healthy returns for shareholders.’

L&G’s savings and investment arm saw assets rise 9 per cent to £25 billion while platform assets stood at £3.3 billion.

New fixed interest business was particularly healthy, with investor inflows up 39 per cent on the previous year’s period.