L&G pledges to boost Cofunds platform

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Legal & General has promised to improve Cofunds’ systems as part of a strategic review.

In its interim results, published today, the company says it will “focus on improving operational efficiency in Cofunds” as it carries out a review of its digital savings business.

Total assets under administration on the platform are up 6 per cent to £73.1bn, compared to £69bn at the same time last year.

But net flows for the year to date are down 35 per cent, from £4bn last year to £2.6bn.

Suffolk Life, L&G’s Sipp business, increased AUA by 9 per cent from £7.5bn to £8.2bn over the same period. Net flows for the year to date are down slightly from £600m to £500m.

Overall, L&G’s net cash generation rose 14 per cent year-on-year from £827m to £943m for the nine months to 30 September.

In its retirement business, annuity sales are down 61 per cent from £3.9bn in Q3 last year to £1.5bn. The company attributes this to a £3bn buy-in deal with ICI pension fund in 2014.

Bulk annuity sales have fallen from £3.4bn to £1.2bn.

L&G Investment Management saw total AUA increase by 8 per cent from ££662.1bn to £717bn. External net inflows jumped 161 per cent for the year to date, from £8.3bn last year to £21.7bn as at the end of September.