L&G sets aside £66m for Kingswood closure

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Legal & General has set aside a total of £66m in relation to the closure of its flagship Kingswood office next year.

It comes on top of a further £8m provision made in 2015.

L&G was forced to delay the closure of the Surrey site after staff voted to strike over the move.

The company says the closure is not expected to incur any further costs.

In its 2016 results, published today, L&G says it made a £60m net loss on the sales of Cofunds, related business Investor Portfolio Service, and the separate sale of Sipp provider Suffolk Life.

L&G completed the sale of Cofunds and IPS to Aegon in January this year for £147.5m. L&G’s investment in the Cofunds platform resulted in an impairment of £64m in 2016, which was offset by a £4m profit on the sale of Suffolk Life to Curtis Banks for £45m.

Overall pre-tax profit is up 17 per cent from around £1.4bn to £1.6bn.

Profits in L&G’s retirement business rose 27 per cent from £641m in 2015 to £811m last year, while profits at L&G Investment Management were relatively flat over the same period, going from £355m to £366m.