£bn |
Assets 31/12/09 |
Assets 31/12/08 |
% Change |
LGIM (3) |
315 |
264 |
19 |
Savings |
55 |
46 |
19 |
Annuities (4) |
22 |
18 |
22 |
· Worldwide new business APE in line with expectations at £1,388m (FY08 £1,486m)
Tim Breedon, Group Chief Executive, said:
"Legal & General's strategy of increasing efficiency and concentrating new business activity in the markets we consider to be most attractive in terms of growth potential and return on capital is delivering. The cost savings target was exceeded and we will continue to pursue further expense reductions across the Group.
In 2009 I set a target to deliver £450 million of net cash from our UK businesses. Ongoing changes to product mix and design, cost reductions, favourable pricing conditions in the annuity market and substantial growth in assets under management have delivered results well ahead of expectations, with in excess of £650 million of net cash generated in 2009.
We are making good progress internationally. LGIM has won its first mandates in the US and we successfully launched our joint ventures in the Gulf and India."
(1) Net cash generation is estimated and defined as the expected release (before experience variances) from in-force business less new business strain for the UK non profit Risk and Savings businesses, plus the shareholders' share of bonuses on With-profits business and the post-tax IFRS operating profit on LGIM and other UK businesses. (2) Estimated, before payment of final dividend (3) Includes Annuities and some Savings assets. (4) Non profit annuities.
Investment Management gross funds for the year amounted to £33.3 billion. Of this LGIM inflows accounted for £31.5 billion, the second highest annual level of gross funds ever, as UK Corporate pensions trustees and institutional clients continue to be attracted to its range of indexed, fixed income and Liability Driven Investment (LDI) propositions combined with high levels of service.
In Savings, a strategy of reducing volumes in traditional capital intensive life and pensions products in favour of more capital efficient SIPPs and Unit Trusts continues to drive growth. Overall UK Savings APE was 3 per cent higher than last year at £907 million, boosted by a 69 per cent growth in Unit Trusts and Structured Product sales.
In Risk, Individual annuities recorded double digit growth and individual protection outperformed the falls in housing market transactions reflecting platform leadership and breadth of distribution. The pensions buyout market, after an extraordinary 2008, returned to the levels seen in previous years and Legal & General took a broadly consistent share of this market in 2009. The strategy of focussing on the small scheme market coupled with a highly selective approach to large transactions has been maintained. Total APE in the Risk business fell 25 per cent to £366 million.
International sales were down 3 per cent, as businesses in the United States, France and the Netherlands performed well in challenging market conditions. New joint ventures in India and the Gulf began trading during the fourth quarter.
At the end of 2009, the estimated IGD surplus was £3.1 billion (FY2008: £1.9 billion), before the payment of a final dividend. This represents a capital coverage ratio of 223 per cent, up from 173 per cent at the end of December 2008. Discussions in relation to Solvency II are proceeding more productively, though a number of well known issues remain to be resolved.
The annuity portfolio credit default experience during 2009 was very low at £1 million (net of expected recoveries).
Trading outlook
Over the next 12 months we anticipate only modest growth in the UK economy and activity in the housing market is likely to remain subdued. However, UK Risk and Savings markets which were depressed in 2009 are expected to rebound. We have announced new distribution arrangements with Saga, Skipton Building Society and Northern Rock which will contribute to overall sales in 2010.
In addition, there is a good pipeline of UK mandates for Liability Driven Investment (LDI) and we expect another strong year in 2010 in terms of new business flows in LGIM.
Our international footprint continues to grow. These businesses are expected to make an increasing contribution to the Group's performance in 2010.
Gross new business £bn |
FY 2009 |
FY 2008 |
% Change |
Index |
23.9 |
26.7 |
(10%) |
Active Fixed (including cash) |
4.3 |
2.2 |
95% |
LDI and Other |
3.3 |
2.0 |
65% |
LGIM Total |
31.5 |
30.9 |
2% |
Institutional Unit Trusts |
1.8 |
2.2 |
(18%) |
Investment Management |
33.3 |
33.1 |
1% |
Although 2009 was a volatile year for financial markets, Legal & General Investment Management (LGIM), the largest manager of UK sourced pension assets, attracted £31.5 billion of new funds (£30.9 billion in 2008). This represents the second highest amount ever achieved and 2 per cent higher than last year.
LGIM has been successful in its strategy to diversify by growing its core active management capability and risk management solutions alongside its market leading index tracking business. In 2009, 24 per cent of new business inflows came from non-index fund clients, up from 14 per cent in 2008.
New business inflows into LGIM's active fixed income funds amounted to £2.7 billion in 2009 (excluding cash), more than double the £1.1 billion received in 2008
In 2009 LGIM also successfully expanded its range of risk management solutions, attracting £3.1 billion inflows into its structured solutions business (£1.9 billion in 2008).
LGIM continues to expand its global reach in the US, Europe and the Middle East. Following a period of very strong investment performance, Legal & General Investment Management America (LGIMA) took on its first external US mandate in 2009. LGIM also won its first European investment grade corporate bond client and received a substantial index fund mandate from the Gulf region during the year. Total LGIM overseas new business in 2009 amounted to £3.1 billion (£3.5 billion in 2008) with further growth expected in 2010 and beyond.
Gross new business from Institutional (Corporate Pensions) clients amounted to £29 billion during 2009 (£27.6 billion in 2008). Existing clients were responsible for over 80 per cent of new business inflows during 2009. Total net inflows in 2009 were £8.8 billion.
LGIM had £315 billion of assets under management as at end December 2009 a year on year increase of £51 billion (19 per cent), as a result of new business inflows and recovering markets.
New business APE £m |
FY 2009 |
FY 2008 |
% Change |
Protection |
180 |
207 |
(13%) |
Annuities |
186 |
281 |
(34%) |
RISK |
366 |
488 |
(25%) |
Legal & General's Risk businesses maintained their market strength in 2009. Individual Protection outperformed the reduction in housing transactions, and retained itsnumber oneposition in the UK protection market. Sales were generated through IT leadership, product innovation, customer centric service and breadth of distribution. A disciplined and selective approach to pension buyout business was maintained throughout 2009. The overall size of the buyout market reduced in 2009 from the exceptional highs of 2008 and L&G has broadly maintained market share year on year, however given the smaller market, overall Risk APE was £366 million, down 25 per cent on 2008.
New business APE £m |
FY 2009 |
FY 2008 |
% Change |
Individual |
123 |
140 |
(12%) |
Group |
57 |
67 |
(15%) |
Protection |
180 |
207 |
(13%) |
Individual protection
During 2009, significant progress was made in selling High Net Worth, family and business protection products. Sales through the Direct channel increased 12 per cent on 2008 and the strategic relationship with Nationwide Building Society again delivered an excellent performance. In Q4 the Bancassurance channel was strengthened by the addition of exclusive distribution arrangements with Northern Rock and the Skipton Building Society.
Total gross written premiums increased by 2 per cent year-on-year to £818 million however, the subdued housing market resulted in a fall in new business APE of 12 per cent compared with 2008. In contrast with recent years, when new business volumes have tended to be higher in the first half, sales in the second half of 2009 were 5 per cent ahead of the previous six months.
Group protection
Overall gross written premiums were maintained at over £290 million. The market experienced higher levels of re-quoting in 2009 as companies looked for cost reduction opportunities; but Legal & General's focus on retaining profitable business and developing long-term relationships resulted in a stable position. New business premiums were 15 per cent lower due to pressure on corporate payrolls.
The General Insurance business undertook a number of efficiency measures in 2009 including the strengthening of underwriting and claims management disciplines. It has also prioritised profitability over volume and positioned itself to target profitable opportunities in 2010. Gross written premiums at £273 million were 8 per cent lower than in 2008.
New business APE £m |
FY 2009 |
FY 2008 |
% Change |
Individual |
98 |
87 |
13% |
Pension buyout |
88 |
194 |
(55%) |
Annuities |
186 |
281 |
(34%) |
When compared with an exceptional 2008, the buyout market in 2009 was characterised by a lower volume and value of transactions. Legal & General's buyout sales were stronger in the first six months versus those in the second half of the year. This reflected the continuing strategy of concentrating on the core small schemes market and a highly selective approach to large deals. The very favourable competitive environment and pricing conditions experienced in the first half were not present in second half as competition returned. Legal & General continues to lead in the traditional smaller schemes bulk purchase market. Overall buyout volumes were down 55 per cent year on year against an estimated market fall of approximately 50 per cent
Increased product and pricing sophistication and increased distribution opportunities helped individual annuities sales to grow by 13 per cent. Total annuity volumes reduced by 34 per cent to £186 million.
New business APE £m |
FY 2009 |
FY 2008 |
% Change |
Retail investments |
375 |
229 |
64% |
Non profit |
341 |
459 |
(26%) |
With-profits |
191 |
191 |
0% |
TOTAL SAVINGS |
907 |
879 |
3% |
Assets £bn |
FY 2009 |
FY 2008 |
% Change |
Retail investments |
13.0 |
9.1 |
43% |
Non profit |
20.4 |
17.3 |
18% |
With-profits |
21.4 |
19.4 |
10% |
TOTAL |
54.8 |
45.8 |
20% |
Savings delivered a strong underlying performance during 2009, with growth in new business APE of 3 per cent, increased net fund flows of £1.7 billion and significant growth in Assets Under Administration (AuA) of 20 per cent to £54.8 billion.
Underpinning this performance has been a transformation of the mix of products sold towards more modern, less capital intensive offerings. During the year significant costs have been taken out of the business, commissions reduced and products redesigned. These contributed to improved underlying net cash flow in 2009.
APE sales rose 64 per cent to £375 million with substantial growth across Unit Trust, Structured Products and ISAs. Unit Trust and Structured Product sales grew by 69 per cent. ISA sales grew 51 per cent reflecting the ability to sell more products via direct sales channels. During the year, the shift to higher margin, actively managed products commenced. There has been considerable demand for L&G's Dynamic Bond Trust.
|
Assets |
% Change |
Assets at 31/12/08 |
£9.1bn |
|
2009 Gross inflows |
£3.6bn |
79% |
Outflows/redemptions 2009 |
(£1.5bn) |
6% |
Other (including market movements) |
£1.8bn |
|
TOTAL |
£13.0bn |
43% |
Overall, net fund flows increased substantially to £2.1 billion versus £0.4 billion in 2008, with AuA growth of 43 per cent to £13 billion. Structured products accounted for 27 per cent of total new business flows of £3.6 billion. The market upturn in the second half of the year has also contributed to the growth in assets.
|
Assets |
% Change |
Assets Under Administration at 31/12/08 |
£17.3bn |
|
2009 Gross inflows |
£2.5bn |
(23%) |
Outflows/redemptions 2009 |
(£2.0bn) |
(19%) |
Other (including market movements) |
£1.8bn |
|
TOTAL |
£20.4bn |
18% |
Sales of non profit business were 26 per cent lower at £341 million APE, driven by management actions to reduce sales of older style savings products. Assets grew by 18 per cent to £20.4 billion, driven by the market upturn and positive net flows of £0.5 billion.
Individual SIPP sales grew by 9 per cent, with net flows remaining strong at £0.6 billion and asset growth of 30 per cent to £5 billion. SIPP sales now represent 75 per cent of all non profit individual pension sales. However, total APE sales of non profit pensions were 17 per cent lower at £273 million (FY2008: £328 million) reflecting management action to limit volume in the older style stakeholder products.
Sales of Group SIPP products were 6 per cent higher than last year and new business tender activity remains strong. The changes made to initial commission structures and a focus on fee based intermediaries continues across our Corporate Pensions business. In 2009, the vast majority of non profit corporate pension sales were made on a fee basis. Sales of non profit Group pensions were 20 per cent lower at £125 million (FY2008: £156 million). Increments into existing schemes have been impacted by current economic conditions including lower employment levels and lower salary increases.
The appeal of Unit linked bonds continues to be negatively impacted by previous tax changes and reduced commission rates. This year sales were 48 per cent lower at £68 million (FY2008: £131 million).
|
Assets |
% Change |
Assets Under Administration at 31/12/08 |
£19.4bn |
|
2009 Gross inflows |
£1.5bn |
1% |
Outflows/redemptions 2009 |
(£2.4bn) |
22% |
Other (including market movements) |
£2.9bn |
|
TOTAL |
£21.4bn |
10% |
Overall sales of With-profits products are flat year on year. With-profits bonds sales remain strong, rising 96 per cent in the year. This reflects consumer appetite for these products whilst markets remain turbulent. Sales of old style pension products have declined by 17 per cent reflecting our strategy to reduce volumes in these product lines. The reduction in net outflows to £0.9 billion (FY2008 £1.6 billion) reflects a peak in the maturity and age profile of these products during 2008. Assets under Administration grew by 10 per cent to £21.4 billion.
INTERNATIONAL
New business APE £m |
FY 2009 |
FY 2008 |
Change |
USA |
49 |
51 |
(4%) |
Netherlands |
22 |
29 |
(24%) |
France (including Retail) |
44 |
39 |
13% |
INTERNATIONAL |
115 |
119 |
(3%) |
In the USA, a slower individual term life assurance market and the implementation of selected price rises to improve profitability led to a 19 per cent reduction in sales in local currency terms to US$76 million (2008: US$94 million).
In the Netherlands, regulatory developments have impacted volumes in unit linked products. In local currency terms, overall new business APE at €25 million was 31 per cent lower compared to the same period last year.
In France, whilst total new business APE of €47 million was 6 per cent lower in local currency terms than the previous year; the savings business recovered in the final quarter of 2009. The French business is well positioned to continue to expand in its core markets of high net worth savings and group protection.
In India, the joint venture with Bank of Baroda and Andhra Bank began trading as IndiaFirst in November 2009 and by the year end had already issued nearly 14,000 policies. In the Gulf, in addition to the group life and credit life products already on sale, full operations through the retail branches of joint venture partner Ahli United Bank commenced in December 2009.
Matt Hotson Director, Investor Relations and Strategy 020 3124 2150
Adrian Liew Investor Relations Manager 020 3124 2044
Damian O'Reilly Investor Relations Manager 020 3124 2151
Ching-Yee Chan Investor Relations Co-ordinator 020 3124 2345
John Godfrey Group Communications Director 020 3124 2090
Richard King Head of Media Relations 020 3124 2095
James Bradley Tulchan Communications 020 7353 4200
Mal Patel Tulchan Communications 020 7353 4200
o A teleconference for investors will be held at 9.30 am today. UK investors should dial 0800 358 7325 and overseas investors should dial +44 (0)20 8609 3822. There is no pin code required.
o A copy of this announcement can be found in "Results", under the "Financial information" section of our shareholder website at http://investor.legalandgeneral.com/investors/results.cfm.
FINANCIAL CALENDAR 2010 |
Date |
2009 Preliminary Results |
23 March 2010 |
Q1 interim Management Statement 2010 |
5 May 2010 |
Forward-looking statements
This document may contain certain forward-looking statements relating to Legal & General Group, 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 Group'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 document or any other forward-looking statement it may make.
Legal & General Group Plc |
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Unaudited New Business Premiums |
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|||||
Twelve months to 31 December 2009 |
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INVESTMENT MANAGEMENT |
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Twelve months to 31 December |
Increase/ |
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|
2009 |
|
2008 |
|
(decrease) |
|
|
|
|
|
|
|
|
|
|
|
|
|
£m |
|
£m |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Managed pension funds |
|
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|
|
|
|
|
|
|
|
||||
- Pooled funds |
|
|
|
|
|
|
|
|
25,606 |
|
26,733 |
|
(4) |
||||
- Segregated funds |
|
|
|
|
|
|
|
|
3,381 |
|
841 |
|
302 |
||||
|
|
|
|
|
|
|
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|
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|
|
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|
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|
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|
|
|
|
28,987 |
|
27,574 |
|
5 |
|
Other funds1 |
|
|
|
|
|
|
|
|
|
|
4,297 |
|
5,517 |
|
(22) |
||
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|
|
|
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|
|
|
|
|
|
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|
Total new funds |
|
|
|
|
|
|
|
|
|
33,284 |
|
33,091 |
|
1 |
|||
|
|
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|
Attributable to: |
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|
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|
|
|
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|
||
Legal & General Investment Management |
|
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|
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|
31,485 |
|
30,873 |
|
2 |
||||||
Legal & General Retail Investments |
|
|
|
|
|
|
1,799 |
|
2,218 |
|
(19) |
||||||
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|
INVESTMENT MANAGEMENT QUARTERLY PROGRESSION |
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|||||||||
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|
|
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|
3 months to |
|
3 months to |
|
3 months to |
|
3 months to |
|
3 months to |
|
3 months to |
|
3 months to |
|
3 months to |
|
|
|
31.12.09 |
|
30.09.09 |
|
30.06.09 |
|
31.03.09 |
|
31.12.08 |
|
30.09.08 |
|
30.06.08 |
|
31.03.08 |
|
|
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
|
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|
|
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|
Managed pension funds |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
- Pooled funds |
6,742 |
|
7,076 |
|
5,763 |
|
6,025 |
|
3,423 |
|
9,748 |
|
8,254 |
|
5,308 |
||
- Segregated funds |
1,344 |
|
790 |
|
533 |
|
714 |
|
430 |
|
47 |
|
141 |
|
223 |
||
|
|
|
|
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|
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|
|
|
|
|
8,086 |
|
7,866 |
|
6,296 |
|
6,739 |
|
3,853 |
|
9,795 |
|
8,395 |
|
5,531 |
|
Other funds |
869 |
|
1,326 |
|
1,382 |
|
720 |
|
890 |
|
908 |
|
3,151 |
|
568 |
||
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|
|
|
|
|
|
Total new funds |
8,955 |
|
9,192 |
|
7,678 |
|
7,459 |
|
4,743 |
|
10,703 |
|
11,546 |
|
6,099 |
||
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|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Legal & General Investment Management |
8,450 |
|
8,853 |
|
7,166 |
|
7,016 |
|
4,185 |
|
10,464 |
|
10,611 |
|
5,613 |
||
Legal & General Retail Investments |
505 |
|
339 |
|
512 |
|
443 |
|
558 |
|
239 |
|
935 |
|
486 |
||
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|
WORLDWIDE NEW BUSINESS APE QUARTERLY PROGRESSION |
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|
||||||||||
|
|
3 months to |
|
3 months to |
|
3 months to |
|
3 months to |
|
3 months to |
|
3 months to |
|
3 months to |
|
3 months to |
|
|
|
31.12.09 |
|
30.09.09 |
|
30.06.09 |
|
31.03.09 |
|
31.12.08 |
|
30.09.08 |
|
30.06.08 |
|
31.03.08 |
|
|
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Protection |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
- Individual |
31 |
|
32 |
|
30 |
|
30 |
|
33 |
|
34 |
|
37 |
|
36 |
||
- Group |
16 |
|
11 |
|
16 |
|
14 |
|
16 |
|
14 |
|
23 |
|
14 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
47 |
|
43 |
|
46 |
|
44 |
|
49 |
|
48 |
|
60 |
|
50 |
|
Annuities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
- Individual (non profit) |
16 |
|
22 |
|
25 |
|
33 |
|
26 |
|
20 |
|
20 |
|
18 |
||
- Individual (with-profits) |
1 |
|
- |
|
1 |
|
- |
|
1 |
|
- |
|
1 |
|
1 |
||
- Bulk purchase |
9 |
|
5 |
|
24 |
|
50 |
|
31 |
|
25 |
|
66 |
|
72 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26 |
|
27 |
|
50 |
|
83 |
|
58 |
|
45 |
|
87 |
|
91 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk |
73 |
|
70 |
|
96 |
|
127 |
|
107 |
|
93 |
|
147 |
|
141 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Unit trusts |
85 |
|
73 |
|
65 |
|
46 |
|
47 |
|
37 |
|
45 |
|
30 |
||
- ISAs |
32 |
|
34 |
|
26 |
|
14 |
|
14 |
|
16 |
|
28 |
|
12 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non profit savings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
- Unit linked bonds |
23 |
|
13 |
|
14 |
|
18 |
|
30 |
|
26 |
|
35 |
|
40 |
||
- Individual pensions |
60 |
|
65 |
|
71 |
|
76 |
|
82 |
|
83 |
|
93 |
|
69 |
||
- DWP rebates |
- |
|
1 |
|
- |
|
- |
|
- |
|
1 |
|
- |
|
- |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With-profits savings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
- Bonds |
11 |
|
13 |
|
18 |
|
13 |
|
8 |
|
9 |
|
7 |
|
4 |
||
- Individual pensions |
22 |
|
22 |
|
40 |
|
39 |
|
31 |
|
33 |
|
47 |
|
38 |
||
- DWP rebates |
1 |
|
4 |
|
7 |
|
- |
|
1 |
|
4 |
|
6 |
|
1 |
||
- Group pensions |
- |
|
- |
|
1 |
|
- |
|
- |
|
1 |
|
1 |
|
- |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total savings |
|
234 |
|
225 |
|
242 |
|
206 |
|
213 |
|
210 |
|
262 |
|
194 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total UK risk and savings new business |
307 |
|
295 |
|
338 |
|
333 |
|
320 |
|
303 |
|
409 |
|
335 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- USA |
9 |
|
11 |
|
13 |
|
16 |
|
15 |
|
12 |
|
12 |
|
12 |
||
- Netherlands |
5 |
|
4 |
|
6 |
|
7 |
|
6 |
|
6 |
|
8 |
|
9 |
||
- France |
7 |
|
1 |
|
6 |
|
24 |
|
6 |
|
8 |
|
4 |
|
15 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
21 |
|
16 |
|
25 |
|
47 |
|
27 |
|
26 |
|
24 |
|
36 |
|
France retail investment business |
2 |
|
1 |
|
1 |
|
2 |
|
2 |
|
1 |
|
2 |
|
1 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total international new business |
23 |
|
17 |
|
26 |
|
49 |
|
29 |
|
27 |
|
26 |
|
37 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total worldwide new business |
330 |
|
312 |
|
364 |
|
382 |
|
349 |
|
330 |
|
435 |
|
372 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Unit trusts and ISAs exclude institutional investments in unit trust funds which are disclosed as part of institutional fund management new business, although these are included in investment management 'other funds'.. |
|||||||||||||||||
Legal & General Group Plc |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Unaudited New Business Premiums |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Twelve months to 31 December 2009 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WORLDWIDE NEW BUSINESS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
Twelve months to 31 December 2009 |
Twelve months to 31 December 2008 |
|
|||||||||||
|
|
|
|
Annual |
|
Single |
|
APE |
|
Annual |
|
Single |
|
APE |
|
Increase/ |
|
|
|
|
|
premiums |
|
premiums |
|
|
|
premiums |
|
premiums |
|
|
|
(decrease) |
|
|
|
|
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
£m |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Protection |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
- Individual |
|
|
123 |
|
- |
|
123 |
|
140 |
|
- |
|
140 |
|
(12) |
||
- Group |
|
|
57 |
|
- |
|
57 |
|
67 |
|
- |
|
67 |
|
(15) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
180 |
|
- |
|
180 |
|
207 |
|
- |
|
207 |
|
(13) |
|
Annuities |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
- Individual (non profit) |
|
- |
|
962 |
|
96 |
|
- |
|
841 |
|
84 |
|
14 |
|||
- Individual (with-profits) |
|
- |
|
17 |
|
2 |
|
- |
|
27 |
|
3 |
|
(33) |
|||
- Bulk purchase |
|
- |
|
883 |
|
88 |
|
- |
|
1,938 |
|
194 |
|
(55) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- |
|
1,862 |
|
186 |
|
- |
|
2,806 |
|
281 |
|
(34) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total risk |
|
|
180 |
|
1,862 |
|
366 |
|
207 |
|
2,806 |
|
488 |
|
(25) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Unit trusts |
|
10 |
|
2,595 |
|
269 |
|
12 |
|
1,466 |
|
159 |
|
69 |
|||
- ISAs |
|
22 |
|
838 |
|
106 |
|
29 |
|
413 |
|
70 |
|
51 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non profit savings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
- Unit linked bonds |
|
- |
|
677 |
|
68 |
|
- |
|
1,306 |
|
131 |
|
(48) |
|||
- Individual pensions |
|
144 |
|
1,279 |
|
272 |
|
181 |
|
1,460 |
|
327 |
|
(17) |
|||
- DWP rebates |
|
- |
|
10 |
|
1 |
|
- |
|
8 |
|
1 |
|
N/A |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
With-profits savings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
- Bonds |
|
- |
|
553 |
|
55 |
|
- |
|
283 |
|
28 |
|
96 |
|||
- Individual pensions |
|
102 |
|
211 |
|
123 |
|
106 |
|
434 |
|
149 |
|
(17) |
|||
- DWP rebates |
|
- |
|
115 |
|
12 |
|
- |
|
118 |
|
12 |
|
0 |
|||
- Group pensions |
|
1 |
|
- |
|
1 |
|
2 |
|
3 |
|
2 |
|
(50) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total savings
|
|
279 |
|
6,278 |
|
907 |
|
330 |
|
5,491 |
|
879 |
|
3 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total UK risk and savings new business |
|
459 |
|
8,140 |
|
1,273 |
|
537 |
|
8,297 |
|
1,367 |
|
(7%) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- USA |
|
49 |
|
- |
|
49 |
|
51 |
|
- |
|
51 |
|
(4) |
|||
- Netherlands |
|
8 |
|
142 |
|
22 |
|
13 |
|
157 |
|
29 |
|
(24) |
|||
- France |
|
14 |
|
237 |
|
38 |
|
17 |
|
164 |
|
33 |
|
15 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
71 |
|
379 |
|
109 |
|
81 |
|
321 |
|
113 |
|
(4) |
|
France retail investment business |
|
- |
|
56 |
|
6 |
|
- |
|
63 |
|
6 |
|
0 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total international new business |
|
71 |
|
435 |
|
115 |
|
81 |
|
384 |
|
119 |
|
(3) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total worldwide new business |
|
530 |
|
8,575 |
|
1,388 |
|
618 |
|
8,681 |
|
1,486 |
|
(7) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INTERNATIONAL OPERATIONS IN LOCAL CURRENCY |
|
|
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months to 31 December 2009 |
Twelve months to 31 December 2008 |
Increase/ |
|||||||||||
|
|
|
|
Annual |
|
Single |
|
APE |
|
Annual |
|
Single |
|
APE |
|
(decrease) |
|
|
|
|
|
premiums |
|
premiums |
|
|
|
premiums |
|
premiums |
|
|
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
USA ($m): |
|
76 |
|
- |
|
76 |
|
94 |
|
- |
|
94 |
|
(19) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Netherlands (€m): |
|
9 |
|
157 |
|
25 |
|
16 |
|
199 |
|
36 |
|
(31) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
France (€m): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
- Life and pensions |
|
15 |
|
264 |
|
41 |
|
21 |
|
206 |
|
42 |
|
(2) |
||
|
- Unit trusts |
|
- |
|
63 |
|
6 |
|
- |
|
79 |
|
8 |
|
(25) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UK INDIVIDUAL APE BY CHANNEL |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
Twelve months to 31 December 2009 |
|
||||||
|
|
|
|
|
|
|
|
|
|
Annual |
|
Single |
|
Total APE |
|
% of |
|
|
|
|
|
|
|
|
|
|
|
£m |
|
£m |
|
£m |
|
total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent financial advisers |
|
|
|
|
|
298 |
|
4,175 |
|
716 |
|
64 |
|||||
Tied |
|
|
|
|
|
82 |
|
2,381 |
|
320 |
|
28 |
|||||
Direct |
|
|
|
|
|
21 |
|
701 |
|
91 |
|
8 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
401 |
|
7,257 |
|
1,127 |
|
100 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve months to 31 December 2008 |
|
||||||
|
|
|
|
|
|
|
|
|
|
Annual |
|
Single |
|
Total APE |
|
% of |
|
|
|
|
|
|
|
|
|
|
|
£m |
|
£m |
|
£m |
|
total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Independent financial advisers |
|
|
|
|
|
345 |
|
4,819 |
|
827 |
|
75 |
|||||
Tied |
|
|
|
|
|
104 |
|
1,388 |
|
243 |
|
22 |
|||||
Direct |
|
|
|
|
|
19 |
|
149 |
|
34 |
|
3 |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
468 |
|
6,356 |
|
1,104 |
|
100 |
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|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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|
|
|
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|
|
|
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|
|
|
|
|
|
Note: Unit trusts and ISAs exclude institutional investments in unit trust funds which are disclosed as part of institutional fund management new business (see Investment Management below). |
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