The boss of insurance giant Legal & General today hailed the firm’s “formidable momentum” after revealing it was on track to deliver record annual profits.
Annuity sales to date were £6.2bn. L&G said there had been “strong momentum” in the UK and US markets.
The FTSE 100 group said it was sitting on £6.9bn of cash over and above what it needs to hold for regulatory purposes.
“L&G is on track for a record year for earnings and profits,” said chief executive Nigel Wilson.
Our core business divisions are generating formidable momentum… Our market-leading positions and strong balance sheet, coupled with our management capability is allowing us to benefit from global growth opportunities.
L&G’s asset management arm attracted external net inflows of £38.1bn to the end of October.
Premiums from the firm’s general insurance arm rose six per cent to £2.1bn. L&G said actions taken in the first half of the year in its group protection business were starting to bear fruit. It expects half-year losses to be completed reversed in the second half of the year.
Shore Capital markets analyst Eamonn Flanagan said: "Hot on the heels of a terrific and smart disposal of its Mature Savings business, Legal & General has issued a punchy and resilient trading update this morning, for the year to date, with the group highlighting a particularly strong recent few weeks."
Despite the positive news, L&G shares fell 0.69 per cent to 259.9p.