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.

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.

Recommended

Share tips of the week – 24 September
Share tips

Share tips of the week – 24 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
24 Sep 2021
Three strong Asian stocks trading at bargain prices
Share tips

Three strong Asian stocks trading at bargain prices

Professional investor Nitin Bajaj of the Fidelity Asian Values investment trust picks three stocks that dominate their industries, earn good returns o…
20 Sep 2021
Why it pays to face up to your investment mistakes
Investment strategy

Why it pays to face up to your investment mistakes

Buying stocks can be a complicated business. But selling stocks can be tricky, too – even if you sell for the right reasons. Max King explains how to …
17 Sep 2021
Share tips of the week – 17 September
Share tips

Share tips of the week – 17 September

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
17 Sep 2021

Most Popular

A nightmare 1970s scenario for investors is edging closer
Investment strategy

A nightmare 1970s scenario for investors is edging closer

Inflation need not be a worry unless it is driven by labour market shortages. Unfortunately, writes macroeconomist Philip Pilkington, that’s exactly w…
17 Sep 2021
Two shipping funds to buy for steady income
Investment trusts

Two shipping funds to buy for steady income

Returns from owning ships are volatile, but these two investment trusts are trying to make the sector less risky.
7 Sep 2021
Should investors be worried about stagflation?
US Economy

Should investors be worried about stagflation?

The latest US employment data has raised the ugly spectre of “stagflation” – weak growth and high inflation. John Stepek looks at what’s going on and …
6 Sep 2021