TIDMLGEN
RNS Number : 4119G
Legal & General Group Plc
07 May 2014
LEGAL & GENERAL GROUP PLC QUARTER 1 2014 INTERIM MANAGEMENT
STATEMENT
Stock Exchange Release
7 May 2014
LEGAL & GENERAL: NET CASH UP 21% WITH RECORD SALES
GROUP HIGHLIGHTS:
-- NET CASH GENERATION UP 21% TO GBP301M (Q1 2013: GBP249M)
-- OPERATIONAL CASH GENERATION UP 6% TO GBP297M (Q1 2013: GBP281M)
BUSINESS HIGHLIGHTS:
-- RECORD BULK PURCHASE ANNUITY PREMIUMS OF GBP3,045M (Q1 2013: GBP357M)
-- ANNUITY ASSETS UP 15% TO GBP38.3BN (Q1 2013: GBP33.3BN)
-- LGIM TOTAL AUM UP 5% TO GBP462.6BN (Q1 2013: GBP441.2BN)
-- LGIM INTERNATIONAL AUM UP 21% TO GBP63.2BN (Q1 2013: GBP52.4BN)
-- LGIM NET FLOWS OF GBP3.8BN (Q1 2013: GBP4.7BN)
-- UK RETAIL PROTECTION SALES UP 56% TO GBP42M (Q1 2013: GBP27M)
-- WORKPLACE AUA UP 32% TO GBP9.1BN (Q1 2013 GBP6.9BN)
-- COFUNDS AUA UP 25% TO GBP65.6BN (Q1 2013 GBP52.3BN)
-- US PROTECTION SALES UP 12% TO $38M (Q1 2013: $34M)
-- GBP1.0BN OF DIRECT INVESTMENTS COMPLETED IN Q1
Nigel Wilson, Group Chief Executive, said:
"Legal & General delivered record results in Q1. Net cash
and Operational cash, up 21% and 6% respectively, are at their
highest-ever levels. LGIM AUM of GBP463bn is at an all-time high,
Retail Protection sales hit a new Q1 record and Cofunds grew AUA to
GBP66bn. Our record annuity sales were driven by the UK's largest
ever Bulk Purchase Annuity transaction, the GBP3bn deal for the ICI
Pension Fund."
"We already benefit from favourable demographic trends; we have
economically and socially useful products for customers; and with
our LGIM economists forecasting 3% plus economic growth in the UK
and US, we are excited about the prospects for our business."
"There is strong demand for our pension de-risking and
protection products in both markets - the GBP1.8 trillion of UK DB
liabilities will provide substantial future business. We believe
the UK DC market will grow from around GBP250bn today to GBP3
trillion by 2030. LGIM's recent agreement to acquire Global Index
Advisors (GIA), a US based DC provider will accelerate our US
growth. In Q1 we invested in UK infrastructure and housing at a
rate of around GBP100m per week, completing GBP1bn of transactions
including Cala's acquisition of Banner Homes and a GBP252m
investment in affordable housing provider Places for People which
will finance 7,000 new homes."
GROUP CASH GENERATION
Growth
GBPm Q1 2014 Q1 2013 %
3 months to 31 March
--------------------------------- -------- -------- -------
Operational cash generation 297 281 6
--------------------------------- -------- -------- -------
New business surplus / (strain) 4 (32) n/a
--------------------------------- -------- -------- -------
Net cash generation 301 249 21
--------------------------------- -------- -------- -------
LEGAL AND GENERAL RETIREMENT (LGR)
Growth
GBPbn Q1 2014 Q1 2013 %
3 months to 31 March
---------------------- -------- -------- -------
Annuity sales 3.3 0.8 331
---------------------- -------- -------- -------
Annuity net flows 2.8 0.4 600
---------------------- -------- -------- -------
Annuity assets 38.3 33.3 15
---------------------- -------- -------- -------
LEGAL & GENERAL INVESTMENT MANAGEMENT (LGIM)
Growth
GBPbn Q1 2014 Q1 2013 %
3 months to 31 March
---------------------- -------- -------- -------
LGIM net flows 3.8 4.7 (19)
---------------------- -------- -------- -------
LGIM AUM 462.6 441.2 5
---------------------- -------- -------- -------
LEGAL & GENERAL ASSURANCE SOCIETY (LGAS)
Growth
GBPm Q1 2014 Q1 2013 %
As at 31 March
------------------------------ -------- -------- -------
UK Protection new business
annual premiums 62 47 32
------------------------------ -------- -------- -------
UK Protection gross premiums 353 325 9
-------- -------- -------
Savings net flows (GBPbn) 1.6 (0.3) n/a
------------------------------ -------- -------- -------
Savings AUA (GBPbn) 115.3 61.7 87
------------------------------ -------- -------- -------
LEGAL & GENERAL CAPITAL (LGC)
Growth
GBPbn Q1 2014 Q1 2013 %
As at 31 March
--------------- -------- -------- -------
LGC assets 4.8 n/a n/a
--------------- -------- -------- -------
LEGAL & GENERAL AMERICA (LGA)
Growth
$m Q1 2014 Q1 2013 %
3 months to 31 March
---------------------------------- -------- -------- -------
LGA new business annual premiums 38 34 12
---------------------------------- -------- -------- -------
LGA gross premiums 269 238 13
---------------------------------- -------- -------- -------
Financial PERFORMANCE - operational cash up 6% and net cash up
21%
Operational cash generation for the Group is up 6% to GBP297m in
the first three months of the year (Q1 2013: GBP281m) reflecting
growth in our business especially in LGR and Workplace savings. New
business surplus of GBP4m (Q1 2013: strain of GBP32m) resulted in
net cash up 21% to GBP301m (Q1 2013: GBP249m). The new business
strain benefited from a positive new business surplus arising from
the significant volumes of annuities and UK Retail Protection
written in the quarter. The net cash also includes the LGA 2014
ordinary dividend of $73m, 11% up on 2013, equating to GBP44m (Q1
2013: $66m equating to GBP43m).
BUSINESS PERFORMANCE - A STRONG START TO THE YEAR
Legal & General Retirement (LGR)
LGR new business premiums quadrupled to GBP3.3bn (Q1 2013:
GBP0.8bn). This growth was primarily due to securing the largest
ever UK Bulk Annuity contract with ICI Pension Fund covering GBP3bn
of the Fund's liabilities, demonstrating the strength of our
diversified proposition in the DB scheme de-risking market.
Individual Annuity sales were down 40% to GBP244m (Q1 2013:
GBP406m). This sales result includes a cGBP15m impact from
cancellations during the extended cooling off period which we
offered to our customers post the budget.
Total annuity assets increased to GBP38.3bn (Q1 2013:
GBP33.3bn), reflecting record net inflows of GBP2.8bn for Q1
2014.
Legal & General Investment Management (LGIM)
LGIM received net flows of GBP3.8bn in the quarter (Q1 2013:
GBP4.7bn) and now has assets under management (AUM) of GBP463bn, up
5% on Q1 2013 (GBP441bn).
LGIM achieved net inflows from International clients of GBP2.6bn
(Q1 2013: GBP6.7bn) with continued strong growth in LGIM America's
LDI and Active Fixed Income products. Due to the potentially large
flows from our institutional client base, quarterly flows are
inherently uneven. International AUM now total GBP63.2bn up 21% on
Q1 2013 (GBP52.4bn).
Our Solutions business performed strongly with AUM increasing 7%
to GBP76.5bn (Q1 2013: GBP71.4bn). In addition derivative notional
overlays associated with this business, which also drive revenue,
increased in the UK by GBP5.4bn in the quarter and 17% in the year,
increasing to GBP165.5bn (Q1 2013: GBP140.9bn).
Our DC business continues to gather momentum, with AUM
increasing 11% to GBP31.8bn (Q1 2013: GBP28.7bn). We continue to
build our UK DC proposition and invest in our capabilities in order
to benefit from the expected growth in the market.
UK retail AUM continued to grow with net flows of GBP0.3bn (Q1
2013: GBP(0.3)bn) as passive funds become more popular in the
retail market post the Retail Distribution Review (RDR). LGIM's
bolt-on acquisition of US based Global Index Advisors for up to
$50.4m, announced in February, is on track for completion in May
2014. The assets of $15.6bn (as at FY 2013) will provide the Group
scale and distribution in the $6 trillion US DC market.
Legal & General Assurance Society (LGAS)
Retail Protection had a record Q1 with sales up 56% to GBP42m
(Q1 2013: GBP27m) as a result of our well positioned, competitively
priced range of products provided through leading technology.
Growth is broad based across all key distribution channels,
including our direct sales.
UK Group Protection achieved sales of GBP20m (Q1 2013: GBP20m)
benefiting from the robustness of our market proposition. In France
our Group Protection business has increased by 38% (Q1 2014:
EUR40m, Q1 2013: EUR29m) following continued collaboration with the
UK and early progress on building our distribution network.
In Q1 our LGAS Savings net inflows were GBP1.6bn (Q1 2013:
outflows of GBP0.3bn) with assets under administration (AUA) now at
GBP115.3bn (Q1 2013: GBP61.7bn).
Our digital platforms continue to grow. Cofunds generated net
inflows of GBP1.5bn leading to an increased AUA of GBP65.6bn.
Our Workplace savings net flows were GBP0.5bn (Q1 2013:
GBP0.3bn). Gross inflows of GBP0.7bn (Q1 2013: GBP0.5bn) continued
on a steady upward trend benefiting from incremental enrolment into
pre-existing schemes and new schemes in the quarter. Participation
rates remain high at more than 90% as opt outs continue to be low
and the platform now has AUA of GBP9.1bn (Q1 2013: GBP6.9bn).
Workplace savings now has 1 million customers on the platform (FY
2013: 903k). We continue to target halving the losses of GBP29m per
annum experienced in 2013 as the business benefits from increased
scale and continued automation.
General Insurance gross premiums were slightly lower, down 2%,
to GBP84m (Q1 2013: GBP86m) reflecting disciplined pricing although
direct sales continued to grow.
Legal & General America (LGA)
LGA continued to deliver growth in sales with Q1 up 12% to $38m
(Q1 2013: $34m). LGA has focussed term assurance and universal life
offerings with high quality service and value for money pricing.
Gross premiums are up 13% to $269m (Q1 2013: $238m) and LGA now has
over 1 million customers.
LEGAL & GENERAL CAPITAL (LGC)
During the period LGC made over GBP1.0bn of new direct
investments including a GBP252m investment into Places for People
which will finance the building of 7,000 new homes in the UK. These
strategic investments provide a risk adjusted yield enhancement to
our traded fixed income portfolio and were part of the asset
portfolio backing the GBP3bn bulk annuity deal completed by LGR.
LGC also invested GBP52m to support the acquisition of Banner Homes
by CALA. This will make CALA a UK national housebuilder with a
target for 2017 turnover exceeding GBP800m. Direct Investments have
reached GBP4.1bn across LGC, LGR and LGA with a strong pipeline of
attractive investment opportunities.
OUTLOOk
We reiterate the operational cash guidance we gave at the full
year results to deliver operational cash generation from LGR of
around GBP290m in 2014 (2013: GBP260m), from LGAS excluding General
Insurance of around GBP430m in 2014 (2013: GBP421m) and from LGA of
around GBP45m (2013: GBP44m).
We are on track in 2014 to exceed the GBP4.1bn annuity premiums
we wrote in 2013 with a strong quote pipeline in bulk annuities. We
expect the Individual Annuity market to contract by c50% in 2014
and by a further half in 2015. Our market leading Retail Protection
business has good momentum. LGIM continues to see strong demand for
its Liability Driven Investment and Active Fixed capabilities and
we continue to build our international presence, particularly in
the Gulf, Europe and the US. LGC has good opportunities to make
further direct investments, some of these we expect to be in new
areas diversifying our portfolio and enhancing our
capabilities.
DIVERSIFIED BUSINESSES FOR A MODERN PENSIONS MARKET
The Chancellor of the Exchequer and the Pensions Minister have
supported a clear pro-choice, pro-consumer agenda to modernise
pensions: a direction of travel that has been clear for some time.
We agree with these objectives and welcome the Budget reforms,
which we expect will accelerate the evolution of a modern pensions
market in the UK. We believe these changes will be good for
customers and also for Legal & General since we have aligned
our diversified businesses to benefit from these trends. We look
forward to working closely with government to help ensure smooth
implementation of these reforms.
We expect to write growing volumes of BPA business to more than
offset individual annuity reductions
-- Private sector UK DB liabilities of around GBP1.8 trillion(1)
, of which GBP600bn(2) already in payment, mean demand for BPA is
likely to grow regardless of the DB to DC transfer consultation
outcome.
-- DB to DC transfers are unlikely to materially affect the BPA
market. Transfers will need to be subject to appropriate consumer
protection and fairness safeguards, but in the event of significant
transfers, DB schemes are likely to find de-risking solutions more
affordable.
-- The BPA market is very different to Individual annuities. It
requires a strong and sustained track record, a robust capital base
and specialist expertise across longevity, investment management
and asset transitioning. Legal & General has all these
competitive advantages, built up over 27 years and is a market
leader in this field. As a result, we expect to continue achieving
our target return on capital.
Ideally placed to provide alternative solutions to annuities
-- Our established mass market distribution combined with our
expertise in both investment and longevity management mean we can
offer a wide range of new and existing products to customers
deciding how to convert savings into retirement income.
-- We are developing low cost income drawdown products with a
range of options for customers to choose how much risk they wish to
take and how much they want to be guaranteed.
Savings level will increase
-- The greater flexibility will make pension savings more
attractive which, together with the higher ISA limits, will mean
higher rates of saving.
-- We have market leading Workplace savings products, a
comprehensive suite of low cost retail solutions including our unit
trust and ISA business and the largest retail savings platform in
Cofunds.
-- The recently announced 75bps cap for auto-enrolment default
funds will focus attention on charges. We expect to benefit as we
already operate with a maximum 50bps charge for our auto-enrolment
default fund which is based on LGIM's passive fund and asset
allocation capabilities.
We have a diversified portfolio of low cost savings, protection
and retirement solution products. This together with our proven
track record in specialist investment capabilities and our
increasing international footprint means we are well placed to
deliver high quality solutions to our customers while growing
returns for our shareholders.
1. The Purple Book: PPF / The Pensions Regulator - November 2013
on a full buy-out basis.
2. Legal & General estimate based on The Purple Book: PPF /
The Pensions Regulator - November 2013.
Enquiries
Investors:
Bernie Hickman Group Financial Controller and Investor Relations
Director 020 3124 2043
Laura Doyle Investor Relations Manager 020 3124 2088
Stephen Thomas Investor Relations Manager 020 3124 2047
Media:
John Godfrey Group Communications Director 020 3124 2090
Richard King Head of Media Relations 020 3124 2095
Michelle Clarke Tulchan Communications 020 7353 4200
Katharine Wynne Tulchan Communications 020 7353 4200
Notes
ANALYST CALL DETAILS:
A copy of this announcement can be found in "Results", under the
"Financial information" section of our shareholder website at
http://www.legalandgeneralgroup.com/investors/results.cfm.
There will be a teleconference at 09.30 BST. Investors should
dial +44 (0)20 3059 8125. A replay of the teleconference can be
accessed by dialling +44 (0)121 260 4861 (PIN code: 4243267#).
FINANCIAL CALENDAR 2014:
Date
------------------------------------- ----------
Annual general meeting 21-May-14
------------------------------------- ----------
Payment date of 2013 final dividend 04-Jun-14
------------------------------------- ----------
Half-year Results 2014 06-Aug-14
------------------------------------- ----------
Q3 Interim Management Statement 2014 04-Nov-14
------------------------------------- ----------
DEFINITIONS:
Operational cash generation is the expected release from
in-force business for the UK non-profit LGAS and LGR businesses,
the shareholder's share of bonuses on with-profits business, the
post-tax operating profit on other UK businesses, including the
expected investment return on LGC invested assets, and dividends
remitted from our international businesses.
Net cash generation is defined as operational cash generation
less new business strain.
FORWARD LOOKING STATEMENTS:
This announcement may contain certain forward-looking statements
relating to Legal & General, its plans and its current goals
and expectations relating to future financial condition,
performance and results. By their nature, forward-looking
statements involve uncertainty because they relate to future events
and circumstances which are beyond Legal & General's control,
including, among others, UK domestic and global economic and
business conditions, market related risks such as fluctuations in
interest rates and exchange rates, the policies and actions of
regulatory and Governmental authorities, the impact of competition,
the timing impact of these events and other uncertainties of future
acquisition or combinations within relevant industries. As a
result, Legal & General's actual future condition, performance
and results may differ materially from the plans, goals and
expectations set out in these forward-looking statements and
persons reading this announcement should not place reliance on
forward-looking statements. These forward-looking statements are
made only as at the date on which such statements are made and
Legal & General Group Plc does not undertake to update
forward-looking statements contained in this announcement or any
other forward-looking statement it may make.
Asset and premium flows
Legal & General investment management assets under management
Active
Index fixed Solu- Property Active
funds interest tions(1) & other equities Total
For the three months ended GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
31 March 2014
As at 1 January 2014 269.8 89.4 70.4 11.3 8.6 449.5
External inflows 4.7 1.9 2.1 0.3 - 9.0
External outflows (5.7) (1.0) (1.2) (0.1) - (8.0)
External net flows (1.0) 0.9 0.9 0.2 - 1.0
Internal net flows 0.1 2.0 0.3 0.5 (0.1) 2.8
Total net flows (0.9) 2.9 1.2 0.7 (0.1) 3.8
Market and other movements 1.5 2.9 4.9 (0.1) 0.1 9.3
As at 31 March 2014 270.4 95.2 76.5 11.9 8.6 462.6
Active
Index fixed Solu- Property Active
funds interest tions(1) & other equities Total
For the three months ended 31 March GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
2013
As at 1 January 2013 243.2 82.2 64.0 8.9 7.7 406.0
External inflows 11.0 2.2 1.1 0.1 - 14.4
External outflows (7.1) (0.9) (1.1) - (0.1) (9.2)
External net flows 3.9 1.3 - 0.1 (0.1) 5.2
Internal net flows 0.1 (0.7) 0.1 - - (0.5)
Total net flows 4.0 0.6 0.1 0.1 (0.1) 4.7
Market and other movements 20.1 2.0 7.3 0.3 0.8 30.5
As at 31 March 2013 267.3 84.8 71.4 9.3 8.4 441.2
Active
Index fixed Solu- Property Active
funds interest tions(1) & other equities Total
For the year ended 31 December GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
2013
As at 1 January 2013 243.2 82.2 64.0 8.9 7.7 406.0
External inflows(2,3) 31.3 11.0 8.6 1.0 0.1 52.0
External outflows(2) (31.8) (5.0) (5.2) (0.3) (0.4) (42.7)
External net flows (0.5) 6.0 3.4 0.7 (0.3) 9.3
Internal net flows 0.7 (1.7) 0.8 0.2 (0.2) (0.2)
Total net flows 0.2 4.3 4.2 0.9 (0.5) 9.1
Market and other movements 26.4 2.9 2.2 1.5 1.4 34.4
As at 31 December 2013 269.8 89.4 70.4 11.3 8.6 449.5
1. Solutions includes liability driven investments and multi-asset funds.
2. Includes unit trust business, both retail and institutional, now
part of LGIM, following the organisational changes effective from 1
July 2013.
3. Includes GBP2.9bn of Legal & General France assets.
Legal & General investment management assets under management
(continued)
3 3 12
months months months
to to to
31.03.14 31.03.13 31.12.13
GBPbn GBPbn GBPbn
LGIM total net flows 3.8 4.7 9.1
Attributable to:
International(1) 2.6 6.7 15.7
UK Institutional (1.4) (1.0) (5.3)
UK Retail 0.3 (0.3) 0.4
Annuities(2, 3) 3.2 - 1.4
Mature Savings (0.9) (0.7) (3.1)
1. FY 2013 International net flows includes GBP2.9bn of Legal & General
France assets.
2. Pension funds already managed by LGIM that switch into LGR annuities
are excluded.
3. Q1 2014 Annuities net flows includes GBP0.34bn of Lucida assets previously
managed externally.
Legal & General investment management assets under management quarterly
progression
Active
Index fixed Solu- Property Active
funds interest tions(1) & other equities Total
Year ended 31 December 2013 GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
At 1 January 2013 243.2 82.2 64.0 8.9 7.7 406.0
External inflows(2) 11.0 2.2 1.1 0.1 - 14.4
External outflows(2) (7.1) (0.9) (1.1) - (0.1) (9.2)
External net flows 3.9 1.3 - 0.1 (0.1) 5.2
Internal net flows 0.1 (0.7) 0.1 - - (0.5)
Total net flows 4.0 0.6 0.1 0.1 (0.1) 4.7
Market and other movements 20.1 2.0 7.3 0.3 0.8 30.5
At 31 March 2013 267.3 84.8 71.4 9.3 8.4 441.2
External inflows(2) 6.2 1.3 4.6 0.2 - 12.3
External outflows(2) (7.9) (0.5) (0.7) (0.1) (0.3) (9.5)
External net flows (1.7) 0.8 3.9 0.1 (0.3) 2.8
Internal net flows 0.4 (0.8) 0.6 - - 0.2
Total net flows (1.3) - 4.5 0.1 (0.3) 3.0
Market and other movements (3.9) (1.9) (5.0) - (0.4) (11.2)
At 30 June 2013 262.1 82.9 70.9 9.4 7.7 433.0
External inflows(2,3) 8.0 4.8 2.2 0.4 0.1 15.5
External outflows(2) (8.3) (2.0) (1.7) (0.1) - (12.1)
External net flows (0.3) 2.8 0.5 0.3 0.1 3.4
Internal net flows - 0.6 - 0.1 (0.1) 0.6
Total net flows (0.3) 3.4 0.5 0.4 - 4.0
Market and other movements 3.2 1.4 0.1 0.6 0.3 5.6
At 30 September 2013 265.0 87.7 71.5 10.4 8.0 442.6
External inflows(2) 6.1 2.7 0.7 0.3 - 9.8
External outflows(2) (8.5) (1.6) (1.7) (0.1) - (11.9)
External net flows (2.4) 1.1 (1.0) 0.2 - (2.1)
Internal net flows 0.2 (0.8) 0.1 0.1 (0.1) (0.5)
Total net flows (2.2) 0.3 (0.9) 0.3 (0.1) (2.6)
Market and other movements 7.0 1.4 (0.2) 0.6 0.7 9.5
At 31 December 2013 269.8 89.4 70.4 11.3 8.6 449.5
1. Solutions includes liability driven investments and multi-asset funds.
2. Includes unit trust business, both retail and institutional, now
part of LGIM, following the organisational changes effective from 1
July 2013.
3. Includes GBP2.9bn of Legal & General France assets.
Legal & General investment management assets under management quarterly
progression (continued)
3 3 3 3 3
months months months months months
to to to to to
31.03.14 31.12.13 30.09.13 30.06.13 31.03.13
GBPbn GBPbn GBPbn GBPbn GBPbn
LGIM total net flows 3.8 (2.6) 4.0 3.0 4.7
Attributable to:
International(1) 2.6 1.8 6.4 0.8 6.7
UK Institutional (1.4) (3.8) (3.2) 2.7 (1.0)
UK Retail 0.3 0.1 0.3 0.3 (0.3)
Annuities(2, 3) 3.2 (0.1) 1.4 0.1 -
Mature Savings (0.9) (0.6) (0.9) (0.9) (0.7)
1. Q3 2013 International net flows include GBP2.9bn of Legal & General
France assets.
2. Pension funds already managed by LGIM that switch into LGR annuities
are excluded.
3. Q1 2014 Annuities net flows includes GBP0.34bn of Lucida assets previously
managed externally.
Assets under administration
Consol-
Mature Overseas idation Retail
Retail Work- Suffolk LGAS adjust- Total Invest-
For the three Platforms(1) Savings(2) place Life Savings ment(3) LGAS
months ments(4) Annuities
ended 31 March GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
2014
As at 1
January
2014 64.1 36.3 8.7 6.6 4.5 (6.8) 113.4 17.0 34.4
Gross
inflows(5) 2.6 0.4 0.7 0.3 0.1 (0.1) 4.0 1.1 3.3
Gross outflows (1.1) (1.1) (0.2) (0.1) (0.1) 0.2 (2.4) (0.8) -
Payments to
annuitants - - - - - - - - (0.5)
Net flows 1.5 (0.7) 0.5 0.2 - 0.1 1.6 0.3 2.8
Market and
other
movements - 0.5 (0.1) 0.1 (0.1) (0.1) 0.3 0.2 1.1
As at 31 March
2014 65.6 36.1 9.1 6.9 4.4 (6.8) 115.3 17.5 38.3
Consol-
Mature Overseas idation Retail
Retail Work- Suffolk LGAS adjust- Total Invest-
For the three Platforms(1) Savings(2) place Life Savings ment(3) LGAS
months ments(4) Annuities
ended 31 March GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
2013
As at 1
January
2013 8.6 36.2 6.0 5.1 4.5 (1.4) 59.0 15.6 32.2
Gross inflows 0.2 0.4 0.5 0.2 0.1 - 1.4 0.7 0.8
Gross outflows (0.2) (1.2) (0.2) (0.1) (0.1) 0.1 (1.7) (1.0) -
Payments to
annuitants - - - - - - - - (0.4)
Net flows - (0.8) 0.3 0.1 - 0.1 (0.3) (0.3) 0.4
Market and
other
movements 0.5 1.7 0.6 0.3 - (0.1) 3.0 1.0 0.7
As at 31 March
2013 9.1 37.1 6.9 5.5 4.5 (1.4) 61.7 16.3 33.3
Consol-
Mature Overseas idation Retail
Retail Work- Suffolk LGAS adjust- Total Invest-
For the year Platforms(1) Savings(2) place Life Savings ment(3) LGAS
ended ments(4) Annuities
31 December GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
2013
As at 1
January
2013 8.6 36.2 6.0 5.1 4.5 (1.4) 59.0 15.6 32.2
Gross
inflows(5) 11.0 1.4 2.1 1.3 0.1 (0.3) 15.6 3.2 4.0
Gross outflows (3.1) (5.1) (0.6) (0.4) (0.1) 0.5 (8.8) (3.3) -
Payments to
annuitants - - - - - - - - (1.9)
Net flows 7.9 (3.7) 1.5 0.9 - 0.2 6.8 (0.1) 2.1
Cofunds
acquisition 45.7 - - - - (5.4) 40.3 - -
Market and
other
movements 1.9 3.8 1.2 0.6 - (0.2) 7.3 1.5 0.1
As at 31
December
2013 64.1 36.3 8.7 6.6 4.5 (6.8) 113.4 17.0 34.4
1. Platforms includes Investor Portfolio Services (IPS)
and Cofunds since acquisition.
2. Mature retail savings products includes with-profit products,
bonds and retail pensions.
3. Consolidation adjustment represents Suffolk Life and Mature Retail
Savings assets included in the Platforms column.
4. Retail Investments includes unit trust products (both LGIM and externally
managed) and structured products (deposits and investments). It also
includes GBP1.2bn of Cofunds assets since acquisition.
5. Platforms gross inflows include Cofunds institutional
net flows.
Assets under administration quarterly progression
Consol-
Mature Overseas idation Retail
Retail Work- Suffolk LGAS adjust- Total Invest-
For the year Platforms(1) Savings(2) place Life Savings ment(3) LGAS
ended ments(4) Annuities
31 December GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn GBPbn
2013
At 1 January
2013 8.6 36.2 6.0 5.1 4.5 (1.4) 59.0 15.6 32.2
Gross inflows 0.2 0.4 0.5 0.2 0.1 - 1.4 0.7 0.8
Gross outflows (0.2) (1.2) (0.2) (0.1) (0.1) 0.1 (1.7) (1.0) -
Payments to
annuitants - - - - - - - - (0.4)
Net flows - (0.8) 0.3 0.1 - 0.1 (0.3) (0.3) 0.4
Market and
other
movements 0.5 1.7 0.6 0.3 - (0.1) 3.0 1.0 0.7
At 31 March
2013 9.1 37.1 6.9 5.5 4.5 (1.4) 61.7 16.3 33.3
Gross
inflows(5) 1.7 0.4 0.5 0.3 - - 2.9 1.0 0.6
Gross outflows (0.7) (1.4) (0.1) (0.1) - - (2.3) (0.9) -
Payments to
annuitants - - - - - - - - (0.5)
Net flows 1.0 (1.0) 0.4 0.2 - - 0.6 0.1 0.1
Cofunds
acquisition 45.7 - - - - (5.4) 40.3 - -
Market and
other
movements (2.1) (0.4) - - - 0.3 (2.2) (0.3) (1.2)
At 30 June
2013 53.7 35.7 7.3 5.7 4.5 (6.5) 100.4 16.1 32.2
Gross
inflows(5) 4.5 0.3 0.5 0.4 - (0.1) 5.6 0.9 2.3
Gross outflows (1.2) (1.4) (0.1) (0.1) - 0.2 (2.6) (0.8) -
Payments to
annuitants - - - - - - - - (0.5)
Net flows 3.3 (1.1) 0.4 0.3 - 0.1 3.0 0.1 1.8
Market and
other
movements 1.3 1.4 0.2 0.1 - (0.2) 2.8 0.5 0.5
At 30
September
2013 58.3 36.0 7.9 6.1 4.5 (6.6) 106.2 16.7 34.5
Gross
inflows(5) 4.6 0.3 0.6 0.4 - (0.2) 5.7 0.6 0.3
Gross outflows (1.0) (1.1) (0.2) (0.1) - 0.2 (2.2) (0.6) -
Payments to
annuitants - - - - - - - - (0.5)
Net flows 3.6 (0.8) 0.4 0.3 - - 3.5 - (0.2)
Market and
other
movements 2.2 1.1 0.4 0.2 - (0.2) 3.7 0.3 0.1
At 31 December
2013 64.1 36.3 8.7 6.6 4.5 (6.8) 113.4 17.0 34.4
1. Platforms includes Investor Portfolio Services (IPS)
and Cofunds since acquisition.
2. Mature retail savings products includes with-profit products,
bonds and retail pensions.
3. Consolidation adjustment represents Suffolk Life and Mature Retail
Savings assets included in the Platforms column.
4. Retail Investments includes unit trust products (both LGIM and externally
managed) and structured products (deposits and investments).
5. Platforms gross inflows include Cofunds institutional net flows.
Annuities single premiums
Single Single Single
premiums premiums premiums
31.03.14 31.03.13 31.12.13
GBPm GBPm GBPm
Individual Annuities 244 406 1,277
Bulk Purchase Annuities 3,045 357 2,812
Total Annuities 3,289 763 4,089
Annuities single premiums quarterly progression
3 3 3 3 3
months months months months months
to to to to to
31.03.14 31.12.13 30.09.13 30.06.13 31.03.13
GBPm GBPm GBPm GBPm GBPm
Individual Annuities 244 200 323 348 406
Bulk Purchase Annuities 3,045 199 1,943 313 357
Total Annuities 3,289 399 2,266 661 763
Insurance new business
Annual Annual Annual
premiums premiums premiums
31.03.14 31.03.13 31.12.13
GBPm GBPm GBPm
Group Protection 20 20 70
Retail Protection 42 27 148
France (LGF) Protection 33 21 21
Netherlands (LGN) Protection 2 2 7
US Protection 23 22 99
Longevity Insurance - 175 270
Total Insurance new
business 120 267 615
Insurance new business annual premiums quarterly progression
3 3 3 3 3
months months months months months
to to to to to
31.03.14 31.12.13 30.09.13 30.06.13 31.03.13
GBPm GBPm GBPm GBPm GBPm
Group Protection 20 13 17 20 20
Retail Protection 42 43 40 38 27
France (LGF) Protection 33 - - - 21
Netherlands (LGN) Protection 2 2 1 2 2
US Protection 23 26 28 23 22
Longevity Insurance - 95 - - 175
Total Insurance new
business 120 179 86 83 267
Gross written premiums on Insurance business
3 3 12
months months months
to to to
31.03.14 31.03.13 31.12.13
GBPm GBPm GBPm
Group Protection 99 85 336
Retail Protection 254 240 990
General Insurance 84 86 375
France (LGF) Protection 46 43 168
Netherlands (LGN) Protection 14 14 54
US Protection 162 154 654
Longevity Insurance 84 32 212
Total gross written premiums on Insurance business 743 654 2,789
Gross written premiums on Insurance business quarterly progression
3 3 3 3 3
months months months months months
to to to to to
31.03.14 31.12.13 30.09.13 30.06.13 31.03.13
GBPm GBPm GBPm GBPm GBPm
Group Protection 99 54 74 123 85
Retail Protection 254 256 250 244 240
General Insurance 84 95 97 97 86
France (LGF) Protection 46 41 41 43 43
Netherlands (LGN) Protection 14 13 14 13 14
US Protection 162 172 156 172 154
Longevity Insurance 84 60 60 60 32
Total gross written premiums on Insurance business 743 691 692 752 654
Overseas new business in local currency
Annual Single Annual Single
premiums premiums APE premiums premiums APE APE
31.03.14 31.03.14 31.03.14 31.03.13 31.03.13 31.03.13 31.12.13
US Protection ($m) 38 - 38 34 - 34 155
Netherlands (LGN) (EURm) 2 35 6 4 41 8 23
France (LGF) (EURm) 40 83 48 29 72 36 57
India (Rs m) - Group's
26% interest 202 1,474 349 309 1,751 484 917
Egypt (Pounds m) - Group's
55% interest 46 - 46 40 - 40 136
Gulf (US$m) - Group's
50% interest 1 1 1 1 1 1 3
Worldwide new business
Annual Single Annual Single
premiums premiums APE premiums premiums APE APE
31.03.14 31.03.14 31.03.14 31.03.13 31.03.13 31.03.13 31.12.13
GBPm GBPm GBPm GBPm GBPm GBPm GBPm
Individual Annuities - 244 24 - 406 40 128
Bulk Purchase Annuities - 3,045 305 - 357 36 281
Total LGR(1) - 3,289 329 - 763 76 409
Group Protection 20 - 20 20 - 20 70
Retail Protection 42 - 42 27 - 27 148
France (LGF) 33 69 40 25 61 31 48
Netherlands (LGN) 2 28 5 3 35 7 19
Workplace Savings 153 250 178 176 258 202 735
Platforms (Cofunds
& IPS)(2) 16 869 103 6 208 26 288
Suffolk Life - 352 35 - 198 19 133
Mature Retail Savings(3) 2 200 22 3 189 22 90
With-profits 16 22 18 14 27 17 61
Total LGAS 284 1,790 463 274 976 371 1,592
Retail Investments(4) 3 965 100 2 711 74 355
US Protection 23 - 23 22 - 22 99
India (26% share) 2 14 3 4 21 6 10
Egypt (55% share) 4 - 4 4 - 4 13
Gulf (50% share) 1 1 1 1 1 1 2
Total Emerging Markets
new business 7 15 8 9 22 11 25
Total Worldwide new
business 317 6,059 923 307 2,472 554 2,480
1. Total LGR new business excludes GBPnil (Q1 13: GBP175m; FY 13: GBP270m)
of APE in relation to longevity insurance transactions. It is not included
in the table due to the unpredictable deal flow from this type of business.
2. Platforms APE includes retail business only and includes Cofunds
from acquistion in Q2 2013.
3. Includes bonds and retail pensions.
4. Includes retail unit trusts and structured products only.
Worldwide new business APE quarterly progression
3 3 3 3 3
months months months months months
to to to to to
31.03.14 31.12.13 30.09.13 30.06.13 31.03.13
GBPm GBPm GBPm GBPm GBPm
Individual Annuities 24 20 33 35 40
Bulk Purchase Annuities 305 20 194 31 36
Total LGR(1) 329 40 227 66 76
Group Protection 20 13 17 20 20
Retail Protection 42 43 40 38 27
France (LGF) 40 4 7 6 31
Netherlands (LGN) 5 4 4 4 7
Workplace Savings 178 240 166 127 202
Platforms (Cofunds
& IPS)(2) 103 99 94 69 26
Suffolk Life 35 44 39 31 19
Mature Retail Savings(3) 22 25 21 22 22
With-profits 18 17 13 14 17
Total LGAS 463 489 401 331 371
Retail Investments(4) 100 83 94 104 74
US Protection 23 26 28 23 22
India (26% share) 3 1 2 1 6
Egypt (55% share) 4 3 3 3 4
Gulf (50% share) 1 - 1 - 1
Total Emerging Markets
new business 8 4 6 4 11
Total Worldwide new
business 923 642 756 528 554
1. Total LGR new business excludes GBPnil (Q1 13: GBP175m; FY 13: GBP270m)
of APE in relation to longevity insurance transactions. It is not included
in the table due to the unpredictable deal flow from this type of business.
2. Platforms APE includes retail business only and includes Cofunds
from acquisition in Q2 2013.
3. Includes bonds and retail pensions.
4. Includes retail unit trusts and structured products only.
Worldwide APE by channel
Annual Single
premiums premiums APE % of
For the three months ended 31 March GBPm GBPm GBPm total
2014
Employee benefit consultants(1) 221 3,329 554 60
Retail independent
and restricted 61 2,276 289 32
Tied including bancassurance 27 321 59 6
Direct 8 133 21 2
Total Worldwide APE
by channel 317 6,059 923 100
1. Includes Lucida
business.
Annual Single
premiums premiums APE % of
For the three months ended 31 March GBPm GBPm GBPm total
2013
Employee benefit consultants 233 636 296 54
Retail independent
and restricted 43 1,389 182 33
Tied including bancassurance 26 331 59 10
Direct 5 116 17 3
Total Worldwide APE
by channel 307 2,472 554 100
Annual Single
premiums premiums APE % of
For the year ended 31 December GBPm GBPm GBPm total
2013
Employee benefit consultants(1) 796 3,597 1,156 47
Retail independent
and restricted 228 7,871 1,015 41
Tied including bancassurance 95 1,418 237 10
Direct 27 449 72 2
Total Worldwide APE
by channel 1,146 13,335 2,480 100
1. Includes Lucida
business.
Worldwide APE by channel quarterly progression
3 3 3 3 3
months months months months months
to to to to to
31.03.14 31.12.13 30.09.13 30.06.13 31.03.13
GBPm GBPm GBPm GBPm GBPm
Employee benefit consultants(1) 554 283 386 191 296
Retail independent
and restricted 289 279 295 259 182
Tied including bancassurance 59 61 58 59 59
Direct 21 19 17 19 17
Total Worldwide APE
by channel 923 642 756 528 554
1. Includes Lucida
business.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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