L&G sales up 27% to £1.3 billion

Legal & General (L&G) has seen a 27% increase in new business sales on an annual premium equivalent (APE) basis for the first nine months of the year from £1.06 billion to £1.3 billion.

Tim Breedon
Tim Breedon

The insurer’s British savings new business has jumped 43% from £673m to £961m.

Assets under management at L&G Investment Management are up 10% from £311 billion to £342 billion.

Individual annuity new business on an APE basis has increased by 12% from £81m to £91m, while bulk annuity new business has fallen 32% from £79m to £54m.

Protection new business has fallen 2% from £133m to £130m.

Retail independent financial advisers (IFAs) accounted for £57m of annual premiums for UK new business for the nine months September 30, compared to £65m over the same period last year. (article continues below)

IFAs made up 38% of L&G’s British new business, while employee benefit consultants made up 33%, the bancassurance channel made up 25%, tied agents made up 2% and direct also made up 2%.

This is broadly similar to the same period last year when IFAs accounted for 39% of British new business, compared to 32% for employee benefit consultants, 23% for bancassurance, 3% for tied agents and 3% direct.

Only 38% of UK new business was written through retail IFAs and within that segment L&G is increasing its focus on IFAs who have evolved their model to meet the demands of the impending retail distribution review.

Tim Breedon, the group chief executive, says he is optimistic about the group’s medium-term growth prospects. Breedon says there are strong organic growth opportunities across the risk, savings and investment management franchises.

Coupled with the opportunities to export its investment management and bancassurance models into new markets, Breedon says this puts the group in an excellent position for the future.