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L&G is encouraged by pre-stakeholder boom

Legal & General says its 25 per cent increase in personal pension business in the first six months of the year indicates its potential in the stakeholder market.

The life office says new group personal pension business grew by 25 per cent to £26m from £20.8m.

New individual pension and annuity business, including GPPs, increased by 10 per cent to £79m from £71.8m and new individual life and pension business grew by 17 per cent to £63m from £53.8m.

L&G says it has more than doubled both volume and market share in the individual life and pension market in the last five years.

New life and pension business on an equivalent premium income basis grew by 5 per cent to £258m from £245.7min the first six months of this year. Operating profits grew by 30 per cent to £336m from £258.5m.

Group chief executive David Prosser says: “The 25 per cent growth in group personal pension business is both an encouraging indicator in advance of the launch of stakeholder next year and an endorsement of our product proposition.

“The plans for e-enabling our business are moving ahead strongly. Our well-known brand and our leading index-tracking skills will be key differentiators in the stakeholder world.”

l Prudential&#39s new business profits soared by 15 per cent to £317m from £275.7m in the first six months of the year, while statutory operating profits were up by 14 per cent to £425m from £372.8m.

The Pru says overall sales by its UK insurance and investment operations in the first half of this year reached £3.5bn – identical to last year&#39s figure.

The life office says this reflects a continued strong performance in the IFA channel as well as the impact of six months of investment sales by M&G.

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