UK - Legal & General has cut its final dividend by 50% to 2.05p per share, after it reported a operating loss of £189m.
In a statement, Legal & General group chief executive Tim Breedon said: "We took action in 2008 to improve business cashflow and strengthen capital by substantially increasing our credit default reserves, reducing our equity exposure, and managing our cost base.
"Balance sheet strength remains our priority in 2009 and will be underpinned by further improvement in the cash profile of our businesses and management of costs."
L&G's preliminary results revealed the firm's risk business - which includes group protection as well as individual and bulk annuity - saw annual premium equivalent sales increase by 14% in 2008.
The firm's investment management business posted gross new fund mandates of £33.1bn - ending the year with assets under management of £264bn, down from £297bn at the end of 2007.
Last February, L&G had started a consultation process involving a nationwide review of the company's support functions which would lead to between 250 and 450 redundancies.
At the time, it said cuts in pension staff would be "key" to a restructuring at Legal & General (www.globalpensions.com: 27/02/09).
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