L&G expects to meet cash aim as revenues rise

UK Insurance group Legal & General (L&G) said it was on target to beat its cash generation target for the full-year on the back of cutting costs and higher sales for the first nine months of the year.

Cash revenues rose 14 per cent in the first nine months to 30 September to £526m compared to £461m a year earlier, leaving L&G on course to meet its £600m target for the full-year, it said yesterday.

It added it generated £168m in cash in the third quarter.

Worldwide sales of £1.3bn for the first nine months were 27 per cent higher than at the same time last year and nearly as high as the sales figure for the whole of 2009, L&G said.

Meanwhile L&G Investment Management (LGIM) increased assets under management (AUM) and diversified its revenue. In the first nine months, 18 per cent of LGIM gross sales were to non-pension clients and 13 per cent of gross sales were to international clients.

The results come after L&G published most of its sales figures for the third quarter on 22 October, two weeks early, after they were e-mailed to analysts by mistake.

Tim Breedon, group chief executive, said: “We are optimistic about the group’s medium term growth prospects. We see strong organic growth opportunities across our risk, savings and investment management franchises where we have built market leading positions.” L&G said it had scope for further dividend increases, building on a 33 per cent hike in 2009 and a 20 per cent rise earlier this year.