Legal and General 

L&G sees 93% growth in annuity sales

L&G sees 93% growth in annuity sales

Legal and General’s revenue from individual annuity sales rose by 93 per cent for the year to 6 December, the company said in a trading statement released to the market this morning (7 December).

That equates to a market share for that product of 14 per cent, according to the company.

L&G has written £900m of lifetime mortgage - equity release - business this year, an increase of 71 per cent.

The company said it now has a 35 per cent market share of the equity release market and said the ageing population in the UK means this is a business area that continues to grow in the coming years.

L&G reported inflows of £38.1bn in the period. It said its property funds and institutional pension fund mandates were particularly strong performers.

Nigel Wilson, chief executive of the company said: “"L&G is on track for a record year for earnings and profits.  

"Our core business divisions are generating formidable momentum. With yesterday's announcement of the sale of our closed book, in run-off Mature Savings business for £650m, our business is now well-positioned and focused on the products and geographies where we see optimum growth and cultural alignment.

"Our market leading positions and strong balance sheet, coupled with our management capability is allowing us to benefit from global growth opportunities."

L&G announced yesterday it is to sell its mature savings business to Swiss Re for £650m.

The business being sold comprises principally retail customers who hold traditional insurance based pensions, savings and investment products.  

It had assets of £33bn at the half year 2017 accounts, and included both unit-linked business and Legal & General's £21.4bn with profits fund.

With around one million customers, it has largely been closed to new business for some time.

David.Thorpe@ft.com

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