* 2010 operating profit 1 bln sterling vs 1.05 bln consensus
* Total dividend up 24 percent
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LONDON, March 17 (Reuters) - Life insurer Legal & General hiked its dividend by a better-than-expected 24 percent after reporting profits broadly in line with expectations, and said its prospects were strong.
L&G, Britain's fourth-biggest life insurer by market value, made a 2010 operating profit of 1 billion pounds ($1.61 billion), down from 1.1 billion pounds the previous year, it said on Thursday.
Analysts had expected a profit of 1.05 billion pounds, according to a consensus forecast calculated by the company.
L&G, like its main rivals, has been highlighting its ability to generate cash and streamlining its financial statements in an effort to dispel perceptions among some investors that life insurers are opaque and highly capital-consumptive.
"We are confident about the growth prospects for Legal & General," chief executive Tim Breedon said in a statement.
"Customer demand is rising in the UK and we have the right business model and product mix for the current economic and demographic environment."
Shares in L&G closed at 112.5 pence on Wednesday, valuing the company at about 6.5 billion pounds. The stock is up 12 percent since the start of the year, outperforming a 1.6 percent rise in the Stoxx 600 European insurance index.
The 175-year old insurer is paying a total dividend for 2010 of 4.75 pence per share, an increase of 24 percent. Analysts had expected a payout of 4.54 pence.
(Reporting by Myles Neligan; editing by Rhys Jones)