In its interim management statement today, Legal & General Group (LON:LGEN) reported 32% growth in net cash to £180m, growth in assets under management and solid new business sales in the first quarter. Worldwide sales were up 2% to £388m, compared to £382m the prior year. The group said it was on track to deliver £600m cash in 2010. LGIM assets under management were £330bn, with net inflows of £3.3bn in the year to date. Annuity assets under management was £23.3bn. Savings assets under administration were £58bn, with net inflows of £0.6bn year to date. Tim Breedon, Group CEO, said:
"Our focus on generating cash, reducing costs, achieving higher returns on capital and modernising our product portfolio continues to deliver. The Group generated £179m of net cash in the quarter, 32% more than in the first quarter of last year and we remain on track to deliver £600m of cash in 2010.
"Investment Management continues to grow with gross new business of £11.2bn in Q1 2010. LGIM had a record £330bn of assets under management at the end of March. UK Savings grew by 30% with a further shift towards Unit Trust and ISA sales, which more than doubled. This positions us well, ahead of the Retail Distribution Review. Weakness in the UK housing market and a subdued BPA market continued to slow our Risk business with sales 34% lower than a year ago but 15% ahead of Q4 2009. Individual annuity sales were up 59% on Q4 2009. We are pleased with the progress of our Indian joint venture, IndiaFirst, which is growing well ahead of expectations.
"We remain confident about the Group's medium term growth prospects with significant opportunities to grow across our Risk, Savings and Investment Management franchises."
According to the Company, the UK economy in 2010 is experiencing slow growth and it expects the UK housing market to remain subdued. L&G continues to expect further recovery in its core UK Risk and Savings markets during 2010 and is positive about the Group’s medium term growth prospects. L&G aims to capitalise on its market leading positions in Risk, further build the LGIM franchise, deliver additional improvements in Savings and continue to develop its existing International portfolio whilst exploring opportunities to expand into other attractive markets.
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