L&G sales edge up in Q1

5th May 2010 07:02

Insurer Legal & General increased sales by 2% during the first quarter and by 18% over the previous three months and says it's on track to deliver £600m of cash in 2010.Worldwide new business on an annual premium equivalent (APE) basis rose to £388m in the three months to 31 March, helped by a first-time contribution from India of £6m. That's up from £382m a year earlier and £330m in the fourth quarter of 2009. Investment management gross new funds jumped 51% to £11.2bn as assets under management at Legal & General Investment Management (LGIM) hit a record £330bn, up 32% on a year ago.There was £10.9bn of gross inflows in the first quarter, £3.9bn more than during the same period last year.Chief executive Tim Breedon said the company remains on track to deliver £600m of cash in 2010 after generating £179m of net cash in the quarter, 32% more than in the first quarter of last year.Meanwhile, improving investment markets lifted the group's IGD capital surplus to £3.4bn from £3.1bn at the end of 2009, and the coverage ratio to 231% from 224%.There was also good news on savings. L&G says its strategy of moving away from traditional capital intensive life products continues to deliver, upping sales to £267m from £206m in 2009 and assets under administration to £58bn."UK Savings grew by 30% with a further shift towards Unit Trust and ISA sales, which more than doubled. This positions us well, ahead of the Retail Distribution Review," said Breedon."We remain confident about the group's medium term growth prospects with significant opportunities to grow across our Risk, Savings and Investment Management franchises."