L&G dividend cut and £189m loss hits share price

Figures show the company lost £189m on an IFRS basis last year compared with a profit of £658m in 2007. As of shortly after midday, shares had fallen more almost five points, or 10.98%, and were trading at just over 38p. On a European Embedded Value (EEV) basis the company reported an increase in operating profit to £870m from £848m in 2007. L&G says it will cut its final dividend to 2.05p per share from 4.10p per share to focus on building its capital strength. It said its losses were caused by the turmoil in the stockmarkets during 2008, but adds its capital position was also impa...