Legal & General Group Plc LGR on track to double new business sales in 2016 (8767K)
27 September 2016 - 4:01PM
UK Regulatory
TIDMLGEN
RNS Number : 8767K
Legal & General Group Plc
27 September 2016
Legal & General Retirement on track to double new business
sales in 2016
Legal & General Group Plc ("Legal & General") today said
its Retirement Division was on track to double its new business
sales in 2016, with sales now at GBP5.4 billion (GBP2.9 billion, FY
2015).
Legal & General's Retirement business continues to
experience strong growth in pension de-risking and lifetime
mortgages. Customer demand has not been impacted by the
introduction of Solvency II in 2016, the uncertainty around Brexit,
and 'lower for longer' interest rates.
In the UK and US Legal & General has written over GBP400
million in bulk annuity business during the month of September
alone. Lifetime Mortgages delivered record sales this quarter, and
are on track to exceed GBP500 million of sales in 2016. Since June
30(th) Legal & General Retirement has written over GBP1.4
billion in sales, and the Group has started to invest in US
infrastructure assets, to support its growing US pensions
de-risking business.
Infrastructure investment forms a key part of our annuity
portfolio investment strategy. GBP6.2 billion of the annuity
portfolio is currently invested in infrastructure assets, of which
almost GBP1 billion has been invested this year. Our GBP250 million
investments into Transport for London's new headquarters and the
London Gateway port, deliver materially enhanced higher risk
adjusted returns to our shareholders.
Kerrigan Procter, Managing Director of Legal & General
Retirement, said:
"Legal & General Retirement is on track to double new
business sales in 2016. Companies still need to manage their
defined benefit pension plans, and people still want to achieve
financial security in retirement, regardless of the uncertain
political, regulatory or economic backdrop.
"Legal & General's aim is to both create and invest in new
real productive assets. This allows us to fulfil pension promises
to our customers in an efficient way, deliver attractive risk
adjusted returns for our shareholders, and also drive job creation
and economic growth which is good for business and customers.
"Legal & General entered the lifetime mortgage market last
year, and the business has grown rapidly. Customers want more
choice in how they fund their retirement, and accessing wealth that
is tied up in their home is an attractive solution for asset rich
retirees. I expect lifetime mortgages to be even more popular with
customers in 2017."
Legal & General Retirement sales since June 30(th) are
GBP1.4bn, comprising of GBP1.2 billion for pension de-risking,
GBP130 million of lifetime mortgages, and GBP90 million of
individual annuities. In July Legal & General signed 5-year
distribution agreements with Santander for lifetime mortgages, and
Aegon for individual annuities.
ends
For further information, please contact:
Investors:
Laura Doyle Head of Investor Relations 020 3124 2088
Sujee Rajah Investor Relations Manager 020 3124 2047
Media:
Richard King Head of Group Corporate Communications 020 3124
2095
Notes to editors:
Legal & General Group Plc:
Established in 1836, Legal & General is a leading provider
of insurance, savings and investment management products in the UK.
The Group has a market capitalisation of GBP13.3bn (as at 23
September 2016) and is responsible for investing GBP841.5bn
worldwide (as at 30 June 2016) on behalf of investors,
policyholders and shareholders. Legal & General has over seven
million customers in the UK for life assurance, pensions,
investments and general insurance plans and over one million
customers in the US who rely on us for life assurance. In 2015,
Legal & General's operating profit (on the IFRS basis) was
GBP1,455m and adjusted earnings per share were 18.58p for the
period, an increase of 14% and 11% respectively.
For more information on Legal & General, please see
http://www.legalandgeneralgroup.com/
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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