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L&G profits boosted by annuity, mortgage and int’l investment sales

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Annuity, mortgage and inter-national investment sales helped Legal & General increase pre-tax profits by 13 per cent, from £523m to £592m, in the first half of the year.

Operating profits for Legal & General Investment Management were also up 13 per cent, from £119m to £135m, with net flows up 100 per cent to £8bn. However, UK net flows were down 69 per cent, from £1.6bn to £500m, with international net inflows up over 200 per cent, from £2.4bn to £7.5bn.

Unit trust sales fell under L&G’s savings arm for the last time and in future will appear as part of LGIM. Passive fund sales increased by 65 per cent to £1.2bn and the provider expects annual growth of between 10 and 20 per cent over the next five years. Total unit trust sales increased by 42 per cent, from £1.2bn to £1.7bn.

Overall, the provider’s savings arm, including the recently purchased Cofunds platform, saw a 14 per cent fall in operating profits, from £72m to £62m.

Annuity business was up 9 per cent, from £139m to £151m, with growth in both bulk and individual annuities.

Group chief executive Nigel Wilson says: “We are evolving our strategy from a post-financial crisis focus on cash to one based on cash plus growth, plus selective acquisitions.”

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