Companies  

L&G D2C platform sees inflows halve year on year

Legal and General has announced that net inflows to its consumer-facing platform Investor Portfolio Service halved in the third quarter, in large part due to continued “challenged” volumes from bank and building societies following implementation of the Retail Distribution Review.

Cofunds, which long-term shareholder L&G wholly acquired in March 2013, achieved net inflows of £3.3bn in Q3, with assets under administration increasing to £58.3bn compared to £53.7bn in the first half of 2013. The company offered no breakdown of institutional and retail assets held on the platform.

It did state, however, that net inflows on the IPS platform, included within Cofunds, were £100m in Q3 compared to £200m in the third quarter of 2012. L&G attributed this to “challenged” volumes from its banks and building society partners.

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Elsewhere, L&G Assurance Society, the protection and savings business created as part of a restructure earlier this year in which Cofunds sits, has seen retail protection sales climb 11 per cent to £40m in the three months to the end of September compared to the same period in 2012.

Group protection sales in Q3 were £17m compared to £20m in the third quarter in 2012. L&G said momentum has been strong with sales year to date of £57m, on par with the same period in 2012.

Workplace platform assets under management increased to £7.9bn from £7.3bn from the first half of 2013, reflecting net inflows of £400m in Q3, in-line with the prior year. Opt-out rates remain low at less than 10 per cent on average and the platform now has over 720,000 customers.

L&G’s self invested personal pension business Suffolk Life saw AUA grow to £6.1bn in the third quarter compared to £5.7bn in the first half of this year, with net inflows of £300m in Q3 compared to £200m in the same period in 2012.

Legal & General Retirement, L&G Group’s annuity and longevity insurance business, saw new business premiums jump 199 per cent to £2.26bn. Premiums in the nine months to the end of September were also up 174 per cent to £3.69bn.

L&G saw individual annuity premiums for the Q3 reduce by 8 per cent to £323m “as the comparator numbers became tougher both for our own business and the market in general”.

The group added the implementation of gender neutral pricing in late 2012 accelerated business into 2012 that would otherwise have been written in 2013.