Personal Pension  

L&G’s pension unit predicted to post more losses for 2014

A research report by Alan Devlin and Chris Roberts of Barclays Capital predicted there would be continued losses for L&G in its auto-enrolment business until 2015, after which initial start-up costs would decline and revenues would start compounding up with monthly contributions.

However, while L&G’s corporate pension division lost £14m in 2012 and £29m in 2013, the report’s authors were not particularly troubled.

They said: “We are not overly concerned on the losses in the workplace pension business, as we believe that in 2014 the cost of adding on new schemes would outweigh the initial revenues from the schemes, while the real prize is likely to come in 2015 and onwards.”

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This analyst note came as Legal & General Investment Management announced an increase in profits of 12 per cent for 2013 to £304m. Total assets under management grew by 11 per cent to £45bn.

Adviser view

Tony Larkins, managing director of Cambridgeshire-based Beacon Wealth Management, said: “While we have not used L&G, initial losses can be expected after launching a new proposition.”