LONDON, Aug 6 (Reuters) - Legal & General ( LGGNF )

reported a 6% rise in half-year core operating profit, driven by

pension buy-outs, but disappointed investors with a weaker

solvency ratio as the British insurer undergoes restructuring

under CEO Antonio Simoes.

The FTSE 100 insurer posted core operating profit of 859

million pounds ($1.14 billion), beating analysts' expectations,

while reaffirming its financial targets.

However, its solvency ratio, an indicator of financial

resilience, fell to 217%, down from 223% a year earlier and

below estimates. Analysts at Jefferies said the metric missed

forecasts despite excluding units earmarked for sale.

L&G shares fell 3% in early trading, having gained 14% so

far this year before the earnings release.

Simoes' strategy has seen L&G offload non-core

businesses such as its U.S. protection business and housebuilder

Cala in order to focus on its core insurance and asset

management units in a bid to return more cash to shareholders.

The company laid out plans to expand its asset management

arm last month - already the UK's largest money manager running

1.1 trillion pounds - at a time when some rival insurers such as

France's AXA have scaled back or sold their fund arms.

L&G also struck a partnership with Wall Street giant

Blackstone to access its private credit assets, pushing

further into the booming area of investors lending to companies.

The company said on Wednesday that the pipeline for

pension risk transfers - companies selling their pensions

liabilities to insurers, which has proven a key growth engine

for the industry - remained strong despite increasing

competition.

The company struck 3.4 billion pounds worth of such

deals in the first half of the year, more than double the prior

year.

L&G's total operating profit, which includes non-retained

businesses, fell 2% to 905 million pounds. The company proposed

a 6.12 pence per share interim dividend, in line with forecasts.

($1 = 0.7516 pounds)