Legal & General Plc has made of rise of 87 per cent in its profit, which is much ahead of the forecasts. The British insurance company also made an increase of 33.33 per cent in its dividend.

After making a shocking cut in payout, this step has been welcomed by the shareholders who are happy with the performance of the firm.

Experts believe that this is a strong set of results and have advised the other firms to follow the footsteps of L&G to be able to perform better.

L&G is the sixth largest insurer in UK and went for cost-cutting measures last year. It has stayed away from products which require heavy middlemen commissions and has also reduced the dividend by as much as 50 per cent. It had also reduced its interim payout by 45 per cent in 2009.

L&G in a statement said that the measures have worked well and operating profit has increased to 1.1 billion pounds as against 592 million pounds in 2008.

After the results, the shares of the firm reached its four-month high and were up by 3 per cent. At 11.13 GMT, the price was at 83.75p.