Legal & General sees confidence returning

3rd Nov 2009 07:26

Insurer Legal & General said worldwide new business was down in the first nine months of 2009 but there are signs of confidence returning to the economy.Worldwide new business in the first nine months of 2008 was down 7% to £1,058m from £1,137m in the corresponding period of 2008.The investment management arm saw gross new funds of £24.3bn, down from £28,3bn in the first three quarters of 2008.Funds under management stood at £311bn at the end of the reporting period, representing net inflows of £12.2bn in the year to date.The UK Risk arm’s new business on a annual premium equivalent (APE) basis fell 23% to £293m from £381m a year earlier, with non-profit annuity assets under management standing at £21bn, representing net inflows in the year to date of £0.7bn.The UK Savings division’s new business APE was up 1% to £673m from £666m in the first nine months of 2008.Tim Breedon, chief executive of the group, said that having set itself a target of delivering £450m of net cash and £50m of annualised cost savings in 2009, the group had exceeded these targets three months ahead of schedule.‘Confidence is slowly returning to the economy. We see modest recovery in the UK going forward. The actions we have taken this year mean that our businesses are well placed to capitalise on future market growth and continue to deliver strong net cash generation,’ Breedon said.