L&G says on track for record year in 2017

Nigel Wilson of Legal & General

Nigel Wilson of Legal & General

Legal & General has said it is "on track for a record year" of profits after a boom in its retirement business.

LGIM said inflows were well-diversified across its product line and geography, singling out liability driven investments, active fixed and property funds as strong performers.

Its investment management business had attracted around £38bn of external net inflows by the end of October.

L&G agreed on 6 December to sell its mature savings business to Swiss Re for £650m.

LGIM also said its U.S. asset management business "continues to deliver" with over 330 institutional clients and over $170 billion (£127 billion) of assets.

The FTSE 100 financial services firm said it had generated around £3.3bn of United Kingdom bulk annuity sales so far in 2017 and doubled U.S. bulk sales to $0.7bn (£0.5bn).

The firm's retirement business recorded total sales to date of £6.2 billion, with the business showing strong momentum in the United Kingdom and U.S. institutional pension risk transfer markets, as well as in individual annuities and lifetime mortgages. Life insurance and protection gross written premiums rose 6% to £2.1bn at the end of October and general insurance gross written premiums were up 13% to £305m.

Commenting on the update, CEO Nigel Wilson said: "Our core business divisions are generating formidable momentum".

Wilson added that the group's market share, balance sheet and management capabilities put it in an ideal position to benefit from "global growth opportunities".

Its shares were up around 0.5pc to 263p in early trade.

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