Legal & General Investment Management witnessed flows into the group plummet by 63 per cent to £7.6bn during 2014.
On Wednesday the insurer published its annual results, highlighting that LGIM’s total assets under management rose by 16 per cent to £708.5bn.
The fund management arm, however, saw net outflows rise from £200m to £16bn, as defined benefits passive funds sought to de-risk.
Overall total revenue rose from £594m to £645m with operating profit jumping by 11 per cent to £336m, up from £304m on the previous 12 months.
L&G group posted an 8 per cent increase in pre-tax profit from £1.1bn to £1.24bn while earnings per share rose 10 per cent to 16.7p, from 15.2p.
L&G group chief executive Nigel Wilson says: “The five global macro trends driving our strategy – ageing populations, globalisation of asset markets, welfare reform, digital connectivity and bank retrenchment – create long-term growth opportunities, which we position our businesses to capture.
“The rapid growth of LGIM’s international business to over £100bn, the £5bn of investment in physical assets in the UK, and our entrance into the lifetime mortgage market are all examples of the successful execution of our strategy.”