View more on these topics

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


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.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm