Wednesday, 06 March 2013 09:46
L&G sees strong sales lead to increased profits in 2012
Legal & General has seen an increase in profits from £1.05bn to £1.08bn, according to its 2012 full-year results released today.
Inflows to L&G Investment Management were up from £3bn in 2011 to £7.1bn while assets under management increased by nine per cent to £406bn.
The company recorded strong sales with individual annuity sales up 26 per cent to £132m and savings sales up to 15 per cent to £1.5bn.
This bought annuity assets under management to £32bn and savings products assets to £70bn.
However, sales of retail funds were down from £688m to £598m as the firm said its advisers were focusing on preparing for RDR which the firm implemented in November 2012. Initial RDR feedback found customers were comfortable with the charging structure and 97 per cent of customers had selected the ongoing service option.
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L&G now acts as the sole savings provider for Nationwide, Yorkshire, Leeds and Principality Building Society, giving it access to 1,200 branches and 20m customers.
Nigel Wilson, group chief executive, said: "L&G's double digit sales growth in 2012 broke records, demonstrating that customers value our insurance, savings and investment proposition. An uncertain, sluggish economy had minimal impact. The more important growth driver for us are ageing population, falling state spending on welfare and new long-term investment opportunities as banks retrench."
L&G also announced last week that L&G Workplace Savings had auto-enrolled over 250,000 new members into company pension schemes. This included well-known companies such as Barclays, Marks & Spencer and Serco and L&G said opt-out rates had been less than 10 per cent overall, lower than expectations of 33 per cent.
Tony Filbin, L&G managing director of workplace savings, said: "We set out to deliver a straightforward, effective AE process and the early results show this is working well. We are delighted to have delivered so many successful new pension scheme members in such a short time. "
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Inflows to L&G Investment Management were up from £3bn in 2011 to £7.1bn while assets under management increased by nine per cent to £406bn.
The company recorded strong sales with individual annuity sales up 26 per cent to £132m and savings sales up to 15 per cent to £1.5bn.
This bought annuity assets under management to £32bn and savings products assets to £70bn.
However, sales of retail funds were down from £688m to £598m as the firm said its advisers were focusing on preparing for RDR which the firm implemented in November 2012. Initial RDR feedback found customers were comfortable with the charging structure and 97 per cent of customers had selected the ongoing service option.
{desktop}{/desktop}{mobile}{/mobile}
L&G now acts as the sole savings provider for Nationwide, Yorkshire, Leeds and Principality Building Society, giving it access to 1,200 branches and 20m customers.
Nigel Wilson, group chief executive, said: "L&G's double digit sales growth in 2012 broke records, demonstrating that customers value our insurance, savings and investment proposition. An uncertain, sluggish economy had minimal impact. The more important growth driver for us are ageing population, falling state spending on welfare and new long-term investment opportunities as banks retrench."
L&G also announced last week that L&G Workplace Savings had auto-enrolled over 250,000 new members into company pension schemes. This included well-known companies such as Barclays, Marks & Spencer and Serco and L&G said opt-out rates had been less than 10 per cent overall, lower than expectations of 33 per cent.
Tony Filbin, L&G managing director of workplace savings, said: "We set out to deliver a straightforward, effective AE process and the early results show this is working well. We are delighted to have delivered so many successful new pension scheme members in such a short time. "
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