HHG, owner of Henderson, Pearl, NPI and Towry Law, saw a recovery in the second half of last year.
Henderson's business was up by 46 per cent in the second half compared with the first half while HHG's other main business, Life Services, recovered from a £40m loss in the first half to £121m profit in the second half.
However, HHG made an overall loss of £864m for last year due to restructuring and write-offs, following a £343m loss in 2002.
Assets under management for Henderson – which, along with the other businesses, was cast off by former owner AMP last December – rose to £70.6bn from £68.7bn.
HHG has placed 246 million new ordinary shares at 48p, raising £118m. The proceeds will be used to buy the 24 per cent of Henderson's holding company HHG Invest that it does not already own from subsidiary Pearl Assurance.
The money is intended to shore up Pearl's finances ahead of the forthcoming FSA capital requirement regulations, under which the Henderson stake would not have counted towards the life company's solvency position.
Free-asset ratios at the end of last year were: Pearl 2.1 per cent, National Provident Life 1.4 per cent and London Life 1.7 per cent.
HHG chief executive Roger Yates says: “The strategic and capital management decisions taken in the first half of 2003 were reinforced by the actions taken in the second half to build a strong balance sheet and create substantial efficiency improvements. Investment markets still present challenges but HHG has an effective platform for sustained growth and profitability.”