Advertisement

Legal & General breaks records with first-quarter results

Financial services group Legal & General (L&G) hailed record assets, sales and cash generation in the first quarter of 2013 as its UK and US businesses exceeded management's expectations.

Financial services group Legal & General (L&G) hailed record assets, sales and cash generation in the first quarter of 2013 as its UK and US businesses exceeded management's expectations.

Strong flows and "positive" equity markets drove L&G Investment Management's (LGIM) assets under management up 9.0% from £406bn to £441bn in the first three months of the year.

Advertisement - Article continues below

The division achieved exceptional net inflows of £5.5bn, up an impressive 113% on last year.

Sales across L&G in the first quarter jumped 28% year-on-year from £434m to £555m, well above the £499m estimate. Total protection and annuities rose 56% to £162m, while savings jumped 20% to £366m.

Meanwhile, operational cash generation rose from £249m to £281m, ahead of analysts' forecasts for £282m, "reflecting the continuing growth in scale of all of our businesses".

"Legal & General has shown it can perform strongly, delivering cash, earnings and dividend growth across the economic cycle. The outlook for the business is strong, and will improve through broader economic growth and further international expansion," said Chief Executive Nigel Wilson.

"Policy makers rightly took drastic action following the credit crisis, but now face huge challenges moving from austerity to growth. So, as well as progressing our own organic and acquisition growth plans, we are engaging positively with the Bank of England, PRA and Treasury as we pursue several growth options through direct investments."

The stock was up 0.18% at 170.91p in early trading on Thursday, having jumped over 17% already in 2013.

Advertisement
Advertisement

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Can Rishi Sunak save the economy with stamp duty cuts and half-price meal deals?
UK Economy

Can Rishi Sunak save the economy with stamp duty cuts and half-price meal deals?

John Stepek runs his eye over the chancellor's £30bn stimulus package and asks if it's enough to get the economy back on its feet after months of lock…
9 Jul 2020
An economics lesson from my barber
Inflation

An economics lesson from my barber

On reopening his shop after lockdown, Dominic Frisby’s barber doubled his prices. It’s all part of the post-Covid inflation process – and we’re going …
8 Jul 2020
What gold, bonds and tech stocks have in common
Stockmarkets

What gold, bonds and tech stocks have in common

"Risk off" or "safe haven" assets such as gold and government bonds have been doing well lately. But so have riskier tech stocks. That seems to defy c…
10 Jul 2020