Legal & General sales hit record-high in third quarter

Investments and insurance group Legal & General (L&G) generated record revenues in the third quarter, with UK and US protection sales each rising by around a third.

L&G recorded £533m of annual premium equivalents (APE) in the three months to September 30th, up 28% on £418m last year.

During the third quarter UK and US protection sales increased by 30% and 33%, respectively, while savings rose 18%.

Savings, which account for over half of total APE, were helped by an impressive 189% increase in Workplace Pension sales, as schemes won in previous periods were transferred onto the platform, the group said.

In the year to date (YTD), total APE came in at a record £1,422m, up 6% on last year's £1,338m.

Assets under management (AuM) were £391bn at the end of the quarter, up 5% on the £371bn recorded at the same time last year.

LGIM (L&G Investment Management) had net inflows of £4.6bn, up 28% year-on-year as a result of strong net inflows in the Liability Driven Investment (LDI) solutions and Active Fixed Income products of £3.3bn, with the majority of this from international clients.

Net cash generation rose from £601m to £616m by the end of the quarter.

"Legal & General delivered record sales in Q3 and YTD, as we continue to see attractive opportunities for growth in each of our markets," said Chief Executive Nigel Wilson.

"Legal & General has delivered sustainable growth in cash and dividends. We are starting to accelerate the evolution of our business; our aim now is to translate strong operating performance into strong earnings growth," he said.

As for the outlook, the company said that developed economies are experiencing a "triangle of austerity" with fiscal, regulatory and bank de-leveraging.

"For this reason, LGIM's economists continue to forecast economic growth in 2013, and beyond, at levels below consensus for both the US and UK. LGIM's macro economic views have proven to be realistic and therefore continue to inform our cautious approach to the management of risk on our balance sheet," the firm said.