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L&G bounces back with 18% annuity sale growth

Annuity-Arrow-700x450.jpgLegal and General has bucked fears of a stagnant annuity market by posting an 18 per cent growth in sales last year.

Individual annuity sales rose from £671m to £795m, financial results released this morning show.

Legal and General’s retirement division saw a 22 per cent increase in operating profit, driven by “increasing market share in individual annuities, and consistent profits emerging from the backbook”.

In terms of market share for individual annuities, L&G says it has gone from 14 per cent to 19 per cent thanks to “product innovation and significantly strengthening our enhanced annuity offering”.

The firm now holds some £63bn in total annuity assets, with total UK sales across annuity products of £9.1bn last year.

Legal and General Investment Management ticked over the £1trn mark in assets under management, posting 3 per cent growth to £1,015bn.

While operating profit across the L&G group was up 10 per cent, profit after tax was down 3 per cent to £1,827m, accounting for a prior year one-off US tax benefit of £246m.

The results read: “The persistent trend of an ageing UK population means L&G retail’s target market continues to expand, both in terms of the numbers of retirees and the levels of wealth they hold.

Ageing demographics is a global trend creating new challenges and opportunities. Principally, employers and individuals are struggling to provide financially secure retirements. To address this need, our strategy provides innovative de-risking solutions for customers.” 

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