Isa sales boost Legal & General

By THIS IS MONEY
Updated:

 

GOOD sales of ISAs and unit trusts in the last few months have helped life assurer Legal & General secure a surge in new business.

L&G said it had achieved 'exceptionally strong' growth in new business in the last quarter despite market statistics showing a 'sharp downturn' in overall sales during January and February.

In the three months to 31 March, new business sales for Isas and unit trusts were up 77% on the same period last year at £53m on an annual premium equivalent (APE) basis, an industry measure used to iron out volatility.

The strong showing helped contribute to what L&G called a record first quarter across the group, with total new business sales up from £174m in 2001 to £233m.

Chief executive David Prosser said: 'This year has started very strongly for Legal & General. These results underline the success of our strategy of delivering profitable organic growth.'

In the UK, individual business was up 54% at £190m, which L&G attributed to alliances with banks such as Barclays, Alliance & Leicester and Northern Rock, which sell L&G products through their branches. In its individual pensions division, new annual premium business grew by 95% to £43m, £40m of which was written on stakeholder terms.

L&G said: 'This reflects both our success in winning employer stakeholder business from fee-based employee benefit consultants, and the increasing membership in schemes with employer contributions.'

Its institutional fund management arm, L&G won £3bn-worth of new business during the quarter.

But it was not all plain sailing for London-based L&G, particularly overseas. While new annual premium business in the US were on the up, sales in France and the Netherlands slipped compared to the same quarter a year ago. Market conditions in France, L&G said, remain difficult.

Group new business also fell, from £26m to £18m, which L&G said reflected reduced levels of demand in the bulk purchase annuity market.

The group added: 'The decline in this business from larger schemes appears to reflect the adverse impact of equity markets on funding.

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