L&G Q1 2015 IMS

RNS Number : 2758M
Legal & General Group Plc
06 May 2015
 



 LEGAL & GENERAL GROUP PLC QUARTER 1 2015 INTERIM MANAGEMENT STATEMENT

 

Stock Exchange Release

6 May 2015

 

LEGAL & GENERAL: RECORD CASH GENERATION

 

GROUP HIGHLIGHTS:

·          OPERATIONAL CASH generation UP 11% TO £330M (Q1 2014: £297M)

·          NET CASH GENERATION UP 8% TO £326M (Q1 2014: £301M)

 

 

BUSINESS HIGHLIGHTS:

·         LGIM TOTAL assets UP 17% to £736.8bn (Q1 2014: £630.9bn)

·         annuity assets up 19% to £45.6bn (Q1 2014: £38.3bn)

·         bulk purchase annuity premiums of £655m (Q1 2014: £3,045m)

·         UK protection premium up 5% to £372m (Q1 2014: £353m)

·         digital savings assets up 16% to £84.2bn (Q1 2014: £72.5bn)

·         group wide direct investment up 62% to £6.3bn (Q1 2014: £3.9bn)

 

Nigel Wilson, Group Chief Executive, said:

"Legal & General's cash generation in Q1 of 2015 was a record, operational cash of £330m was up 11% year on year. Cash is driven by our stock of assets and premiums, which we have grown strongly and consistently across our businesses. LGIM assets increased 17% to £737bn, annuity assets increased 19% to £46bn and direct investment increased 62% to £6.3bn.

We are constantly developing, evolving and streamlining our business to deliver better value products for customers and better returns for investors.  We have set a high bar for management actions and performance including our cost reduction target of £80m this year. 

 

Our business is aligned to long term macro growth trends. We are adapting well to regulatory and political challenges, for example, managing the switch to 'pension freedom' with a new range of cash and retirement products, which now includes lifetime mortgages. The Group is benefiting as we leverage our leading position in pension de-risking, selectively expand our international footprint in the US and Asia, and invest in the future success of the UK through our partnership in Media City in Salford and entry into the private rental sector in 2015."

 

GROUP CASH GENERATION

 

£m

Q1 2015

Q1 2014

Growth %

3 months to 31 March




Operational cash generation

330

297

11

New business (strain)/surplus

(4)

4

n/a

Net cash generation

326

301

8

 

 

           LEGAL & GENERAL RETIREMENT (LGR)

 

£bn

Q1 2015

Q1 2014

Growth %

3 months to 31 March




Annuity assets

45.6

38.3

19

Annuity sales

0.8

3.3

(77)

 

 

           LEGAL & GENERAL INVESTMENT MANAGEMENT (LGIM)

    

£bn

Q1 2015

Q1 2014

Growth %

3 months to 31 March




LGIM total assets

736.8

630.9

17

LGIM total international assets1

126.4

66.0

92

External AUM net flows

4.3

6.6

(35)

Workplace AUA

13.0

9.1

43

Revenue (£m)2

170

151

13

 

         

          INSURANCE

          

£m

Q1 2015

Q1 2014

Growth %

3 months to 31 March




UK Protection gross premiums

372

353

5

UK Protection new business annual premiums

56

62

(10)

 

 

SAVINGS

 

£bn

Q1 2015

Q1 2014

Growth %

3 months to 31 March




Savings AUA

113.2

101.8

11

Savings net flows

0.5

1.1

(55)

 

 

LEGAL & GENERAL CAPITAL (LGC)

 

 

£bn

3 months to 31 March

Q1 2015

Q1 2014

Growth %

Group-wide direct investments

6.3

3.9

62

 

 

 

LEGAL & GENERAL AMERICA (LGA)

 

$m

Q1 2015

Q1 2014

Growth %

3 months to 31 March




LGA gross premiums

283

269

5

LGA new business annual premiums

31

38

(18)

 

1.     LGIM international assets include c£40.bn of US business transferred to LGIM's Chicago office from the UK business and $23.3bn of advisory assets resulting from the acquisition of Global Index Advisors (GIA), both in 2014.

2.     Includes revenues earned on funds managed by LGIM, therefore excluding administrative revenues earned on Workplace Savings assets.

 

FINANCIAL PERFORMANCE - OPERATIONAL CASH UP 11% AND NET

CASH UP 8%

Operational cash generation for the Group is up 11% to £330m in the first three months of the year (Q1 2014: £297m). We have grown our stock of assets: increasing annuity assets in LGR; assets under management in LGIM and shareholder assets in LGC. This growth, together with an increased contribution from General Insurance and increased dividends received from LGA, with the ordinary dividend of $80m, equating to £52m, up 10% on 2014 (Q1 2014: $73m equating to £44m) has driven record operational cash generation for the Group

New business strain of £4m (Q1 2014: surplus of £4m) primarily resulted from lower levels of bulk annuity transactions in the quarter. As a result net cash generation increased by 8% to £326m (Q1 2014: £301m).

 

TRADING UPDATE - FURTHER GROWTH IN BUSINESS STOCK

LEGAL & GENERAL RETIREMENT (LGR)

Total annuity assets increased by 19% to £45.6bn (Q1 2014: £38.3bn). Net flows were £0.2bn (Q1 2014: £2.8bn).

Bulk annuity sales were £655m (Q1 2014: £3,045bn) resulting from 15 policies (Q1 2014: 7 policies). Q1 2014 included the £3.0bn bulk annuity transaction with the ICI Pension Fund. Whilst actual transaction flows are dependent on their affordability, which remain determined on underlying scheme funding levels and prevailing market conditions, we continue to see strong demand for de-risking solutions and retain a healthy transaction pipeline. Individual Annuity sales were £99m (Q1 2014: £244m) following the 2014 budget changes. We remain focussed on achieving our target return on economic capital across all of our annuity products.

Alongside new products developed for the post Budget retirement landscape, in March 2015 we acquired Newlife Home Finance Limited, a provider of lifetime mortgages. We believe that increasing numbers of customers will seek to supplement their retirement income by releasing some of the equity in their homes. We expect to write over £100m of lifetime mortgages this year and increasing amounts thereafter.

LEGAL & GENERAL INVESTMENT MANAGEMENT (LGIM)

Total assets increased 17% to £736.8bn (Q1 2014: £630.9bn). Total net inflows were £2.6bn (Q1 2014: £9.0bn) of which external AUM net flows were £4.3bn (Q1 2014: £6.6bn) driven by on-going client appetite for LGIM's de-risking capabilities, our workplace proposition and retail funds.  Net outflows from GIA's advisory assets were £1.2bn as expected. LGIM is focusing its defined contribution proposition as we continue to develop our fund range for the US DC market. Revenues, excluding workplace savings, increased 13% to £170m (Q1 2014: £151m).

Total Solutions assets increased 24% to £304.0bn (Q1 2014: £244.8bn). Net inflows of £4.9bn (Q1 2014: £6.4bn), more than offset net outflows from Index funds of £1.5bn (Q1 2014: £0.9bn) as defined benefit pension schemes continue to de-risk. We are well placed to continue to benefit from this trend, recently launching an expanded range of LDI solutions to meet clients' requirements.

Property assets were up 29% to £15.3bn (Q1 2014: £11.9bn). Net property inflows of £0.4bn (Q1 2014: £0.7bn) were driven by external flows and continued demand for real assets from our LGR and LGC divisions.

International assets were £126.4bn (Q1 2014: £66.0bn), which includes c£40bn of assets transferred from the UK to be managed by the Chicago office in Q4 2014. We are having continued success in the US, recently launching an Index proposition to complement our Active Fixed Income and LDI funds, which have driven total international net inflows of £0.8bn (Q1 2014: £3.4bn) in the quarter.

Total workplace assets under administration increased 43% to £13.0bn (Q1 2014: £9.1bn). Net inflows were £0.5bn (Q1 2014: £0.5bn). Auto-enrolment participation rates remain high at more than 90% and we have retained our market share of 20% of new members being enrolled. Demand is being driven by smaller schemes reaching their staging dates and increasingly by large schemes being re-broked, where we have had notable success with some leading UK retailers including the John Lewis Partnership. Minimum contribution rates will more than double to 5% in less than two years time, which will contribute to an expected tripling of DC savings in the UK over the next 10 years.

INSURANCE

Total UK Protection gross written premiums increased 5% to £372m (Q1 2014: £353m).

UK Retail Protection sales were lower at £38m (Q1 2014: £42m) compared to a strong first quarter of 2014. Our direct to customer new business more than doubled compared to Q1 2014. UK Group Protection sales were £18m (Q1 2014: £20m) with Q1 2014 benefitting from one large contract.

General Insurance gross premiums were down 4% to £81m (Q1 2014: £84m) reflecting disciplined pricing although direct sales continued to grow. Our direct general insurance channel increased premiums by 16% to £22m (Q1 2014: £19m), benefitting from enhanced digital capabilities.

 

SAVINGS

Total Savings assets under administration increased 11% to £113.2bn (Q1 2014: £101.8bn) with net flows of £0.5bn (Q1 2014: £1.1bn).

Our Savings division now comprises 'Digital Savings', including Cofunds and Suffolk Life and 'Mature Savings' including retail pensions, bonds and our With-profits fund.

Digital Savings net inflows were £0.9bn (Q1 2014: £1.7bn). Cofunds assets of £76.0bn, up 16% (Q1 2014: £65.6bn) included net inflows of £0.7bn (Q1 2014: £1.5bn).

Following the closure to new business of our With-profits fund in January 2015 net outflows from mature products were £0.6bn (Q1 2014: £0.7bn). Since the pensions freedom legislation came into force on 6 April 2015 call volumes have been higher than average, with most customers so far electing to withdraw cash from their policies. Overall we do not anticipate a material impact on our back book of savings assets across the Group.

LEGAL & GENERAL CAPITAL (LGC)

Total direct investments across the principal balance sheet increased 62% to £6.3bn (Q1 2014: £3.9bn) including £0.4bn of new direct investments in the period. Utilising our expanding network of strategic partnerships, we have continued to make strong progress in the origination and development of alternative finance, housing and urban regeneration asset classes.

Further to our build-to-sell activities through CALA, we obtained planning permission for 1,000 homes in Crowthorne, entered the UK Private Rented Sector (PRS) by acquiring a regeneration site at Walthamstow in Q1 2015. We have also committed £100m, matched by Schroder UK Real Estate Fund, to the regeneration of Bracknell town centre and completed the purchase of a 50% interest in the Peel Group's landmark MediaCityUK scheme at Salford Quays in Manchester.

We are working with the Government's Regeneration Investment Organisation and announced that the Group will allocate up to £1.5bn to invest in urban infrastructure projects alongside capital from international investment partners.

We have completed £60m of loans through our pan-European SME lending business, Pemberton Asset Management, as we continue to take advantage of the significant investment opportunities presented by bank deleveraging.

LEGAL & GENERAL AMERICA (LGA)

In LGA the price changes we introduced in 2014 have resulted in sales of $31m (Q1 2014: $38m) with gross premiums increasing 5% to $283m (Q1 2014: $269m). LGA remains focused on net cash generation.

 

OUTLOOK

The Group continues to execute on its clear and focused growth strategy based on five key macro trends: ageing populations; globalisation of asset markets; welfare reform; digital lifestyles and retrenching banks.  We are delivering this both organically and by selective bolt-on acquisitions. Our responses to these trends and the diversification within our business model have enabled us to deliver sustained growth in our cash. External political and regulatory uncertainties remain but by aligning our strategy to these five macro trends we believe we have created a high degree of resilience in our business model.

We are working closely with the Prudential Regulatory Authority (PRA) in respect of Solvency II and will submit applications in Q2 2015 for our internal model to calculate our Solvency Capital Requirement, the use of transitionals and a matching adjustment. We are engaged in on-going dialogue with the PRA and expect this process to conclude in Q4 2015. This regulatory framework will be applicable from 1 January 2016 and we will provide a further update on this process as clarity emerges.

Internationally our business continues to gather momentum with the encouraging start to the year continuing into the second quarter. LGIM has had notable successes in the US, winning our first Index mandate, and in Asia, winning further mandates across the region. In LGR, we continue to explore opportunities to use our specialist experience in the global de-risking market, including in the US and the Netherlands.

We see further opportunities in the UK Insurance market with our retail protection business securing further intermediary distribution arrangements in Q2 2015 and a strong group protection sales pipeline. We expect new business volumes and margins across our UK Protection businesses for 2015 to be broadly in line with 2014.

We are on track to deliver c£80m of operating cost savings across the Group, reducing costs from £1,250m in 2014 to c£1,170m, whilst incurring £40m of restructuring costs in 2015. We are decluttering our business model to focus on core strategies and have contracted to sell Legal & General International (Ireland) Limited, representing £2.7bn of AUA, which is expected to complete in Q2 2015.

We remain confident in delivering the 2015 operational cash guidance we gave at the time of the 2014 full year results.

 

Enquiries

Investors:

Laura Doyle                 Head of Investor Relations                                       020 3124 2088

Stephen Thomas        Investor Relations Manager                                     020 3124 2047

Media:

John Godfrey               Corporate Affairs Director                                          020 3124 2090

Richard King               Head of Group Corporate Communications               020 3124 2095
Michelle Clarke            Tulchan Communications                                          020 7353 4200

Notes

ANALYST CALL DETAILS:

A copy of this announcement can be found in "Results", under the "Financial information" section of our shareholder website at http://www.legalandgeneralgroup.com/investors/results.cfm

 

There will be a teleconference at 10.00 BST.  Investors should dial +44 (0)20 3059 8125. A replay of the teleconference will be available on our website.

FINANCIAL CALENDAR 2015:

  

Date

Annual general meeting

21 May 2015

Payment date of 2014 final dividend

4 June 2015

Half-year Results 2015

5 August 2015

Q3 Interim Management Statement 2015

4 November 2015

 

DEFINITIONS:

 

Operational cash generation is the expected release from in-force business for the UK non-profit insurance and savings and LGR businesses, the shareholder's share of bonuses on with-profits business, the post-tax operating profit on other UK businesses, including the expected investment return on LGC invested assets, and dividends remitted from our international businesses.

 

Net cash generation is defined as operational cash generation less new business strain.

 

The Group's principal balance sheet includes those assets to which shareholders are exposed, excluding assets where our customers have the total market risk and reward.

 

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.

 

ASSET AND PREMIUM FLOWS

 

Legal & General investment management assets

  




  

  

  

  



  



Active

  

  

  

  



  


Index

fixed

Solu-

  

Active

Total

Advisory

Total

For the three months


funds

income

tions

Property

equities

AUM

assets

assets

ended 31 March 2015


£bn

£bn

£bn

£bn

£bn

£bn

£bn

£bn

  




  

  

  

  



  




  

  

  

  



At 1 January 2015


274.8 

103.8 

293.3 

13.6 

8.2 

693.7 

14.8 

708.5 

  




  

  

  

  



  




  

  

  

  



External inflows


6.8 

2.3 

1.4 

0.3 

10.8 


10.8 

External outflows


(8.3)

(1.6)

(1.6)

(0.1)

(11.6)


(11.6)

Overlay/ advisory net flows


 -

5.1 

5.1 

(1.2)

3.9 

  




  

  

  

  



  




  

  

  

  



External net flows


(1.5)

0.7 

4.9 

0.2 

4.3 

(1.2)

3.1 

Internal net flows


(0.6)

0.2 

(0.1)

(0.5)

(0.5)

  




  

  

  

  



  




  

  

  

  



Total net flows


(1.5)

0.1 

4.9 

0.4 

(0.1)

3.8 

(1.2)

2.6 

Cash management movements


1.7 

1.7 

1.7 

Market and other movements


11.3 

4.8 

5.8 

1.3 

0.1 

23.3 

0.7 

24.0 

  




  

  

  

  



  




  

  

  

  



At 31 March 2015


284.6 

110.4 

304.0 

15.3 

8.2 

722.5 

14.3 

736.8 

  




  

  

  

  



Assets attributable to:


  

  

  



External


  

  

630.2 

14.3 

644.5 

Internal


  

  

92.3 

92.3 

  




  

  

  

  



  




  

  

  

  



Assets attributable to:




  

  

  

  



UK


  

  

610.4 

610.4 

International


  

  

112.1 

14.3 

126.4 

  




  

  

  

  



  




  

  

  

  



1. Solutions include liability driven investments, multi-asset funds, and include £197.1bn (Q1 2014: £168.3bn) of derivative notionals associated with the Solutions business. 

2. External net flows exclude movements in short term overlay assets, with maturity as determined by client agreements and are subject to a higher degree of variability. The total value of these assets at 31 March 2015 is £44.0bn (Q1 2014: £33.8bn) and the movement in these assets is included in market and other movements for overlay assets.

3. Cash management movements include external holdings in money market funds and other cash mandates held for clients' liquidity management purposes.

 

  








  








months

  








to

  








31.03.15

  








£bn

  









  









LGIM total external AUM net flows








4.3 

Attributable to:









International








0.8 

UK Institutional









- Defined contribution








0.4 

- Defined benefit  








3.1 

UK Retail








  









  









1. External net flows exclude movements in short term overlay assets, with maturity as determined by client agreements and cash management movements.


Legal & General investment management total assets quarterly progression

 

  



Active

  



  



 

  


Index

fixed

Solu-


Active

Total

Advisory

Total

 

For the year ended


funds

income

tions

Property

equities

AUM

assets

assets

 

31 December 2014


£bn

£bn

£bn

£bn

£bn

£bn

£bn

£bn

 

  




  



  



 

  




  



  



 

At 1 January 2014


269.8 

89.4 

232.5 

11.3 

8.6 

611.6 

611.6 

 

External inflows


4.9 

1.4 

2.4 

0.3 

9.0 


9.0 

 

External outflows


(5.8)

(0.5)

(1.2)

(0.1)

(7.6)


(7.6)

 

Overlay/ advisory net flows


5.2 

5.2 

5.2 

 

  




  



  



 

  




  



  



 

External net flows


(0.9)

0.9 

6.4 

0.2 

6.6 

6.6 

 

Internal net flows


2.0 

0.5 

(0.1)

2.4 

2.4 

 

  




  



  



 

  




  



  



 

Total net flows


(0.9)

2.9 

6.4 

0.7 

(0.1)

9.0 

9.0 

 

Cash management movements


 

Market and other movements


1.5 

2.9 

5.9 

(0.1)

0.1 

10.3 

10.3 

 

  




  



  



 

  




  



  



 

At 31 March 2014


270.4 

95.2 

244.8 

11.9 

8.6 

630.9 

630.9 

 

  




  



  



 

  




  



  



 

External inflows


6.1 

1.5 

2.8 

0.3 

0.1 

10.8 


10.8 

 

External outflows


(13.5)

(1.4)

(0.9)

(0.1)

(0.1)

(16.0)


(16.0)

 

Overlay/ advisory net flows


7.1 

7.1 

0.1 

7.2 

 

  




  



  



 

  




  



  



 

External net flows


(7.4)

0.1 

9.0 

0.2 

1.9 

0.1 

2.0 

 

Internal net flows


(0.1)

(1.3)

0.5 

0.2 

(0.1)

(0.8)

(0.8)

 

  




  



  



 

  




  



  



 

Total net flows


(7.5)

(1.2)

9.5 

0.4 

(0.1)

1.1 

0.1 

1.2 

 

Acquisition of GIA assets


13.4 

13.4 

 

  




  



  



 

  




  



  



 

Cash management movements


0.2 

0.2 

0.2 

 

Market and other movements


5.8 

3.0 

(1.2)

0.5 

(0.3)

7.8 

0.2 

8.0 

 

  




  



  



 

  




  



  



 

At 30 June 2014


268.7 

97.2 

253.1 

12.8 

8.2 

640.0 

13.7 

653.7 

 

  




  



  



 

  




  



  



 

External inflows


5.6 

1.0 

1.5 

0.3 

8.4 


8.4 

 

External outflows


(8.7)

(0.8)

(1.4)

(0.2)

(11.1)


(11.1)

 

Overlay/ advisory net flows


2.5 

2.5 

2.5 

 

  




  



  



 

  




  



  



 

External net flows


(3.1)

0.2 

2.6 

0.1 

(0.2)

(0.2)

 

Internal net flows


(0.3)

(0.9)

(0.1)

(0.1)

(0.1)

(1.5)

(1.5)

 

  




  



  



 

  




  



  



 

Total net flows


(3.4)

(0.7)

2.5 

(0.1)

(1.7)

(1.7)

 

Cash management movements


(0.7)

(0.7)

(0.7)

 

Market and other movements


5.2 

1.7 

17.4 

0.4 

(0.2)

24.5 

0.5 

25.0 

 

  




  



  



 

  




  



  



 

At 30 September 2014


270.5 

97.5 

273.0 

13.2 

7.9 

662.1 

14.2 

676.3 

 

  




  



  



 

  




  



  



 

External inflows


7.1 

1.6 

1.8 

0.5 

11.0 


11.0 

 

External outflows


(11.5)

(1.1)

(3.1)

(0.1)

(15.8)


(15.8)

 

Overlay/ advisory net flows


4.0 

4.0 

(0.3)

3.7 

 

  




  



  



 

  




  



  



 

External net flows


(4.4)

0.5 

2.7 

0.4 

(0.8)

(0.3)

(1.1)

 

Internal net flows


0.2 

(0.3)

0.1 

0.2 

0.2 

0.2 

 

  




  



  



 

  




  



  



 

Total net flows


(4.2)

0.2 

2.7 

0.5 

0.2 

(0.6)

(0.3)

(0.9)

 

Cash management movements


(1.1)

(1.1)

(1.1)

 

Market and other movements


8.5 

7.2 

17.6 

(0.1)

0.1 

33.3 

0.9 

34.2 

 

  




  



  



 

  




  



  



 

At 31 December 2014


274.8 

103.8 

293.3 

13.6 

8.2 

693.7 

14.8 

708.5 

 

  




  



  



 

1. Solutions include liability driven investments, multi-asset funds, and include £194.6bn at 31 December 2014 (Q1 2014: £168.3bn; Q2 2014: £174.9bn; Q3 2014: £185.3bn) of derivative notionals associated with the Solutions business.

2. External net flows exclude movements in short term overlay assets, with maturity as determined by client agreements and are subject to a higher degree

of variability. The total value of these assets at 31 December 2014 is £46.5bn (Q1 2014: £33.8bn; Q2 2014: £33.3bn; Q3 2014: £41.2bn), and the movement in these

assets is included in market and other movements for overlay assets.

3. Cash management movements include external holdings in money market funds and other cash mandates held for clients' liquidity management purposes.



 

Legal & General investment management total assets quarterly progression (continued)

  




  



  



  




  


  




  


months

months

months

months

  




  


to

to

to

to

  




  


31.12.14

30.09.14

30.06.14

31.03.14





  


£bn

£bn

£bn

£bn

  




  



  



  




  



  



Total assets attributable to:




  



  



External




  


618.5 

591.5 

570.3 

547.8 

Internal




  


90.0 

84.8 

83.4 

83.1 

  




  



  



  




  



  



Total assets attributable to:




  



  



UK




  


579.7 

589.8 

570.8 

564.9 

International




  


128.8 

86.5 

82.9 

66.0 

  




  



  



  




  



  



1. Total assets at 31 December 2014 include £14.8bn of advisory assets (Q1 2014: £nil; Q2 2014: £13.7bn; Q3 2014: £14.2bn).



 

 

Legal & General investment management total external Assets Under Management net flows

quarterly progression









  









  





  





months

months

months

months

  





to

to

to

to

  





31.12.14

30.09.14

30.06.14

31.03.14

  





£bn

£bn

£bn

£bn

  









  









LGIM total external AUM net flows





(0.8)

(0.2)

1.9 

6.6 

Attributable to:









International





1.6 

1.3 

2.4 

3.4 

UK Institutional









-Defined contribution





0.9 

0.7 

0.5 

0.6 

-Defined benefit  





(3.6)

(2.2)

(1.2)

2.3 

UK Retail





0.3 

0.2 

0.3 

  









  









1. Extermal net flows exclude movements in short term overlay assets, with maturity as determined by client agreements and cash management movements.

Assets under administration

  




  


  

  

  

  

  




  


  

Digital

  

  



LGIM


  

  

  

  

  




  


  

  

  

  

  




  


  

  

  

  

Consol-


France


  


  

  

  

Mature

idation


and


Retail


  

  

Suffolk  

Retail

adjust-

Total

Nethe-

Work-

Invest-


For the three months

Platforms

Life

Savings3,4

ment

Savings

rlands

place

ments

Annuities

ended 31 March 2015

£bn

£bn

£bn

£bn

£bn

£bn

£bn

£bn

£bn

  

  

  

  

  




  


  

  

  

  

  




  


At 1 January 2015

71.9 

7.7 

36.0 

(6.9)

108.7 

4.4 

11.1 

21.3 

44.2 

Gross inflows

1.9 

0.3 

0.3 

2.5 

0.1 

0.6 

1.5 

0.7 

Gross outflows

(1.2)

(0.1)

(0.9)

0.2 

(2.0)

(0.1)

(0.1)

(1.6)

Payments to pensioners

(0.5)

  

  

  

  

  




  


  

  

  

  

  




  


Net flows

0.7 

0.2 

(0.6)

0.2 

0.5 

0.5 

(0.1)

0.2 

Market and other  

  

  

  

  




  


movements

3.4 

0.3 

0.7 

(0.4)

4.0 

(0.1)

1.4 

1.2 

1.2 

  

  

  

  

  




  


  

  

  

  

  




  


At 31 March 2015

76.0 

8.2 

36.1 

(7.1)

113.2 

4.3 

13.0 

22.4 

45.6 

  

  

  

  

  




  


  

  

  

  

  




  


1. Platforms include Investor Portfolio Services (IPS) and Cofunds.

  


2. Platforms gross inflows include Cofunds institutional net flows. Total Q1 2015 Platforms comprise £38.8bn (Q1 2014: £36.6bn) of retail assets and £37.2bn (Q1 2014: £29.0bn) of assets held on behalf of institutional clients.

3. Mature Retail Savings products include with-profits products, bonds and retail pensions.

  


4. Total AUA at 31 March 2015 include £2.7bn of assets relating to Legal & General International (Ireland) Limited, which is contracted for sale to Canada Life Group during the second quarter of 2015, subject to regulatory approval.

5. Consolidation adjustment represents Suffolk Life and Retail Savings assets included in the Platforms column.

6. Q1 2015 Retail Investments include £1.8bn (Q1 2014: £1.6bn) of LGIM unit trust assets held on our Cofunds platform and £3.4bn (Q1 2014: £3.2bn) of LGIM unit trust assets held on our IPS platform.

 

Assets under administration quarterly progression




  


  

  


  

  




  


  

Digital

  

  



LGIM


  

  


  

  




  


  

  


  

  




  


  

  


  

Consol-


France


  


  

  


Mature

idation


and


Retail


  

  

Suffolk

Retail

adjust-

Total

Nether-

Work-

Invest-


For the year ended

Platforms

Life

Savings

ment

Savings

lands

place

ments

Annuities

31 December 2014

£bn

£bn

£bn

£bn

£bn

£bn

£bn

£bn

£bn

  

  


  

  




  


  

  


  

  




  


At 1 January 2014

64.1 

6.6 

36.3 

(6.8)

100.2 

4.5 

8.7 

20.5 

34.4 

Gross inflows

2.6 

0.3 

0.4 

(0.1)

3.2 

0.1 

0.7 

1.0 

3.3 

Gross outflows

(1.1)

(0.1)

(1.1)

0.2 

(2.1)

(0.1)

(0.2)

(0.9)

Payments to pensioners

(0.5)

  

  


  

  




  


  

  


  

  




  


Net flows

1.5 

0.2 

(0.7)

0.1 

1.1 

0.5 

0.1 

2.8 

Market and other  

  


  

  




  


movements

0.1 

0.5 

(0.1)

0.5 

(0.1)

(0.1)

0.2 

1.1 

  

  


  

  




  


  

  


  

  




  


At 31 March 2014

65.6 

6.9 

36.1 

(6.8)

101.8 

4.4 

9.1 

20.8 

38.3 

  

  


  

  




  


  

  


  

  




  


Gross inflows

2.2 

0.3 

0.3 

(0.1)

2.7 

0.1 

0.6 

0.9 

0.2 

Gross outflows

(1.2)

(0.1)

(1.1)

0.2 

(2.2)

(0.1)

(0.1)

(1.5)

Payments to pensioners

(0.5)

  

  


  

  




  


  

  


  

  




  


Net flows

1.0 

0.2 

(0.8)

0.1 

0.5 

0.5 

(0.6)

(0.3)

Market and other  

  


  

  




  


movements

0.8 

0.1 

0.6 

1.5 

0.1 

(0.1)

0.4 

0.5 

  

  


  

  




  


  

  


  

  




  


At 30 June 2014

67.4 

7.2 

35.9 

(6.7)

103.8 

4.5 

9.5 

20.6 

38.5 

  

  


  

  




  


  

  


  

  




  


Gross inflows

2.8 

0.4 

0.4 

(0.2)

3.4 

0.1 

0.7 

1.2 

0.4 

Gross outflows

(1.3)

(0.2)

(1.2)

0.2 

(2.5)

(0.1)

(0.2)

(1.3)

Payments to pensioners

(0.6)

  

  


  

  




  


  

  


  

  




  


Net flows

1.5 

0.2 

(0.8)

0.9 

0.5 

(0.1)

(0.2)

Market and other  

  


  

  




  


movements

0.1 

0.1 

0.4 

(0.1)

0.5 

(0.1)

0.1 

0.2 

1.6 

  

  


  

  




  


  

  


  

  




  


At 30 September 2014

69.0 

7.5 

35.5 

(6.8)

105.2 

4.4 

10.1 

20.7 

39.9 

  

  


  

  




  


  

  


  

  




  


Gross inflows

2.5 

0.3 

0.3 

(0.1)

3.0 

0.1 

0.8 

1.3 

2.6 

Gross outflows

(1.1)

(0.1)

(1.0)

0.1 

(2.1)

(0.1)

(0.1)

(1.1)

Payments to pensioners

(0.5)

  

  


  

  




  


  

  


  

  




  


Net flows

1.4 

0.2 

(0.7)

0.9 

0.7 

0.2 

2.1 

Market and other  

  


  

  




  


movements

1.5 

1.2 

(0.1)

2.6 

0.3 

0.4 

2.2 

  

  


  

  




  


  

  


  

  




  


At 31 December 2014

71.9 

7.7 

36.0 

(6.9)

108.7 

4.4 

11.1 

21.3 

44.2 

  

  


  

  




  


  

  


  

  




  


1. Platforms include Investor Portfolio Services (IPS) and Cofunds.

  


2. Platforms gross inflows include Cofunds institutional net flows. Total 2014 Platforms comprise  £38.3bn (Q1 2014 £36.6bn; Q2 2014: £37.3bn; Q3 2014: £37.4bn) of retail assets and £33.6bn (Q1 2014: £29.0bn; Q2 2014: £30.1bn; Q3 2014: £31.6bn) of assets held on behalf of institutional clients.

3. Mature Retail Savings products include with-profits products, bonds and retail pensions.

  


4. Consolidation adjustment represents Suffolk Life and Retail Savings assets included in the Platforms column.

5. 2014 Retail Investments include £1.7bn (Q1 2014: £1.6bn; Q2 2014: £1.5bn; Q3 2014: £1.6bn) of LGIM unit trust assets held on our Cofunds platform and £3.2bn (Q1 2014: £3.2bn; Q2 2014: £3.2bn; Q3 2014: £3.2bn) of LGIM unit trust assets held on our IPS platform.

 

LGR new business





  









  




  




months

months

months

months

months

  




to

to

to

to

to

  




31.03.15

31.12.14

30.09.14

30.06.14

31.03.14

  




£m

£m

£m

£m

£m

  









  









Individual Annuities




99 

83 

125 

139 

244 

Bulk Purchase Annuities




655 

2,619 

233 

90 

3,045 

  









  









Total LGR new business




754 

2,702 

358 

229 

3,289 

  









  










 

Insurance new business annual premiums

  









  




  




months

months

months

months

months

  




to

to

to

to

to

  




31.03.15

31.12.14

30.09.14

30.06.14

31.03.14

  




£m

£m

£m

£m

£m

  









  









UK Retail Protection




38 

41 

41 

41 

42 

UK Group Protection




18 

11 

14 

20 

20 

France Protection




31 

33 

Netherlands Protection




US Protection




20 

21 

23 

24 

23 

  









  









Total Insurance new business




108 

73 

79 

85 

120 

  









  










 

Gross written premiums on Insurance business


















months

months

months

months

months





to

to

to

to

to





31.03.15

31.12.14

30.09.14

30.06.14

31.03.14

 




£m

£m

£m

£m

£m



















UK Retail Protection




270 

273 

269 

260 

254 

UK Group Protection




102 

57 

65 

130 

99 

General Insurance




81 

95 

104 

94 

84 

France Protection




43 

41 

41 

45 

46 

Netherlands Protection




13 

16 

12 

14 

US Protection




184 

184 

162 

170 

162 

Longevity Insurance




79 

82 

84 

83 

84 



















Total gross written premiums on insurance business


772 

741 

741 

794 

743 




















Overseas new business in local currency  



  









  



Annual

Single

Annual

Single

Annual

Single

  



premiums

premiums

premiums

premiums

premiums

premiums

  



31.03.15

31.03.15

31.03.14

31.03.14

31.12.14

31.12.14

  









  









US (US$m)



31 

38 

150 

  









Netherlands (€m)



37 

35 

10 

138 

  









France (€m)



42 

111 

40 

83 

41 

351 

  









India (Rs m) - Group's 26% interest



198 

1,067 

202 

1,474 

408 

4,003 

  









Egypt (Pounds m) - Group's 55% interest



55 

46 

149 

  









Gulf (US$m) - Group's 50% interest



  









  









 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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