Lloyds TSB have sold Abbey Life Insurance for almost a billion pounds. The resulting fallout lifted the banks dividend amid reports that earnings are up 15 per cent. The news lifted shares by 4 per cent, raising the value of the bank to 31 billion pounds.
Lloyds TSB are the fifth largest bank in the UK, and they appear to be hitting a good stride. In response they increased their interim dividend by 5 per cent, showing their increasing confidence.
The chief executive of Lloyds, Eric Daniels, reportedly commented: "We're looking to not only have a progressive dividend policy but also increase our dividend cover. For the moment we're very content to continue doing what we're doing. Our greatest opportunity is within the franchise still, so we're very firmly in phase 2, we think we've got a lot more opportunity and a pretty clear roadmap to realise it."
Abbey Life was sold to Deutsche Bank as a closed life insurance business.




