Legal & General is set to incur £40m in restructuring costs in a bid to deliver £80m of cost savings this year.
In its half-year results, published today, the provider says it is pursuing a cost-cutting strategy through the closure of non-core businesses as well as job losses and a review of its UK and US locations. L&G is also closing its flagship headquarters in Kingswood, Surrey, which employs 1,700 people on a 50-acre site.
Overall L&G has posted a £672m profit for the first half of the year, up 6 per cent from £636m at the same time last year.
Its mortgage arm processed around £20bn of business in the first half of the year, up from £18bn in the first half of 2014.
The company is looking to equity release as a growth area. It has written £37m in lifetime mortgages this year, and is targeting £200m in lifetime mortgage sales for the year.
L&G group chief executive Nigel Wilson says: “L&G continues to deliver strong organic growth in the UK and the US from both our developing and established businesses. In addition we are disposing of, or closing non-core businesses and reducing costs in real and nominal terms.
”The actions that we are taking allow us to focus on our chosen markets, enable us to continue to deliver low prices and better value for our increasing customer base and deliver attractive returns for our shareholders.”