Wednesday, 06 March 2019 11:46

Legal & General reports record £10bn in annuity sales

Rate this item
(0 votes)
Nigel Wilson of L&G Nigel Wilson of L&G

 

Legal & General today reported a record rise in annuity sales in 2018 to over £10bn - suggesting that the predicted death of annuities following the Pension Freedoms may have been overdone.

In its annual results, L&G said individual annuity sales were up 18% to £795m but much of the growth in annuity sales at L&G came from bulk deals as DB pension schemes looked to secure future pension payments for members.

A separate report from Defaqto on pensions out today supported the view that the much-predicted demise of annuities may be “exaggerated.”

In a mainly buoyant set of figures L&G said Assets Under Management topped £1 trillion for the first time and operating profit rose 10% to £1.9bn thanks in part to healthy annuity sales. Post-tax profits declined slightly by 3% to just over £1.8bn after last year’s figures were helped by a US tax benefit.

Pension transfer sales nearly tripled from £3.9bn to £9.1bn.

L&G Investment Management, the groups fund management business, saw AUM up 3% to just over £1bn.

Nigel Wilson, group chief executive, said: “2018 saw political uncertainty, asset market declines and slowing economic growth, but we are resilient and performed strongly. We became the UK’s first £1 trillion investment manager, executed a record £9 billion of pension risk transfer deals and invested billions in the UK’s future infrastructure and cities.

“Abroad, we grew US protection new business annual premiums by 12% and increased international assets by 13% to £258bn.

Excluding our £433m positive mortality release, operating profit was up 10% to £1.9bn and we had EPS growth of 7%, DPS growth of 7%, book value growth of 13% and an RoE of 23%.

“We are a globally trusted brand. Our strategy positions us well despite the broader environment, our current trading is strong and we expect this momentum to continue in 2019.”

FREE. Get more stories like this daily to your inbox. Unsubscribe at any time. Sign up now.

FINANCIAL PLANNING JOBS - Advertise your vacancy from £99 ex VAT
Reach 12,000+ professionals by advertising your vacancy with us. Set up an account and post your job the same day. Big savings for advertising 2 or more vacancies.
Special Offer: Use code 'FPJSaver10' on checkout to save on selected packages. Click for details:
jobs.financialplanningtoday.co.uk/