Legal & General predicts reduced adviser activity for the rest of the year and into 2013 as advisers focus on RDR business transformation.
Speaking as part of L&G’s first quarter results, chief executive Tim Breedon says the provider will be focused on growing its workplace proposition and increasing its building society tie-ups. L&G already has partnerships with three of the four biggest societies.
The provider’s first quarter results show a 27 per cent year-on-year fall in new investment business, from 10.3bn to £7.6bn and a 6 per cent drop in new savings business, from £320m to £300m.
There was a 9 per cent increase in individual protection business, from £33m to £36m but a 20 per cent drop in group protection business, from £15m to £12m.
Individual annuities saw an 18 per cent increase, from £22m to £26m, while with-profits new business dropped 22 per cent, from £36m to £28m.
The firm predicts the start of auto-enrolment for large firms, from October, will increase schemes and assets under administration. It says it will have a potential auto-enrolment population of 415,000 members, compared to 350,000 for the 2011 financial year, in addition to existing scheme members secured.
Chief executive Tim Breedon says: “We anticipate preparation for RDR will reduce adviser activity for the rest of the year and the early part of 2013 due to the need for advisers to transform their client business models and processes.”