Legal & General sales flat as nervous Brits save less cash
LIFE insurance group Legal & General posted flat overall sales yesterday, as customers bought more general insurance coverage but shied away from saving or investing their cash.
The 176-year old insurer wrote £434m of new business in the first three months of the year, compared to £433m a year ago.
Gross premiums for general insurance rose 17 per cent to £83m in the quarter, helped by growth in the States, the Netherlands and new ventures in emerging markets.
But savings fell six per cent on last year to £300m on an annual premium equivalent basis, and the division saw £489m net outflows in the quarter as nervous customers cashed out their savings.
But the firm’s institutional investment business LGIM delivered net inflows of £2.6bn, up 29 per cent on a year ago, taking assets under management up three per cent to £383bn. LGIM is attracting more international funds, with business coming from the US and Asia. “Despite the challenging economic backdrop we have strong positions in our chosen markets,” outgoing chief executive Tim Breedon said.
L&G shares closed 3.1 per cent down at 118p.