Legal & General expects record year for profits

Lloyd Doyle
December 7, 2017

L&G's retirement business has made £6.2bn in sales so far this year and investment management had total net inflows of £38.1bn at the end of October.

LGIM said inflows were well-diversified across its product line and geography, singling out liability driven investments, active fixed and property funds as strong performers.

The L&G retirement hub took in £6.2bn of sales, with United Kingdom individual annuity premiums up 93%, equivalent to a 14% market share off the back of favourable demographic trends and uptick in pension risk transfers.

Legal & General Capitalhas generated £256m of gross proceeds from transactions with a gross value of £821m to the end of October and has committed and invested £319m to new investments as it continues to recycle investments into new strategic United Kingdom real asset opportunities.

L&G said gross written premiums in its life insurance business were up 6pc to £2.1bn by the end of October, while general insurance premiums were up 13pc to £305m in the same period. The statement insisted business growth was supported by a strong balance sheet with a Solvency II surplus of £6.9bn and a shareholder coverage ratio of 190%.

Legal & General said it expected a record year for profits and earnings as it reported accelerating growth across its businesses. It said annuity sales generated 4.5 billion pounds of annuity premium and that it had doubled its US institutional pension risk transfer business versus 2016.

Elsewhere, the firm announced the sale of its mature savings business to the ReAssure division of Swiss Re for £650m on 6 December.

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