REG - Legal & General Grp - L&G Q1 2015 IMS <Origin Href="QuoteRef">LGEN.L</Origin> - Part 1
RNS Number : 2758MLegal & General Group Plc06 May 2015LEGAL & GENERAL GROUP PLC QUARTER 1 2015 INTERIM MANAGEMENT STATEMENT
Stock Exchange Release
6 May 2015
LEGAL & GENERAL: RECORD CASH GENERATION
GROUP HIGHLIGHTS:
OPERATIONAL CASH generation UP 11% TO 330M (Q1 2014: 297M)
NET CASH GENERATION UP 8% TO 326M (Q1 2014: 301M)
BUSINESS HIGHLIGHTS:
LGIM TOTAL assets UP 17% to 736.8bn (Q1 2014: 630.9bn)
annuity assets up 19% to 45.6bn (Q1 2014: 38.3bn)
bulk purchase annuity premiums of 655m (Q1 2014: 3,045m)
UK protection premium up 5% to 372m (Q1 2014: 353m)
digital savings assets up 16% to 84.2bn (Q1 2014: 72.5bn)
group wide direct investment up 62% to 6.3bn (Q1 2014: 3.9bn)
Nigel Wilson, Group Chief Executive, said:
"Legal & General's cash generation in Q1 of 2015 was a record, operational cash of 330m was up 11% year on year. Cash is driven by our stock of assets and premiums, which we have grown strongly and consistently across our businesses. LGIM assets increased 17% to 737bn, annuity assets increased 19% to 46bn and direct investment increased 62% to 6.3bn.
We are constantly developing, evolving and streamlining our business to deliver better value products for customers and better returns for investors. We have set a high bar for management actions and performance including our cost reduction target of 80m this year.
Our business is aligned to long term macro growth trends. We are adapting well to regulatory and political challenges, for example, managing the switch to 'pension freedom' with a new range of cash and retirement products, which now includes lifetime mortgages. The Group is benefiting as we leverage our leading position in pension de-risking, selectively expand our international footprint in the US and Asia, and invest in the future success of the UK through our partnership in Media City in Salford and entry into the private rental sector in 2015."
GROUP CASH GENERATION
m
Q1 2015
Q1 2014
Growth %
3 months to 31 March
Operational cash generation
330
297
11
New business (strain)/surplus
(4)
4
n/a
Net cash generation
326
301
8
LEGAL & GENERAL RETIREMENT (LGR)
bn
Q1 2015
Q1 2014
Growth %
3 months to 31 March
Annuity assets
45.6
38.3
19
Annuity sales
0.8
3.3
(77)
LEGAL & GENERAL INVESTMENT MANAGEMENT (LGIM)
bn
Q1 2015
Q1 2014
Growth %
3 months to 31 March
LGIM total assets
736.8
630.9
17
LGIM total international assets1
126.4
66.0
92
External AUM net flows
4.3
6.6
(35)
Workplace AUA
13.0
9.1
43
Revenue (m)2
170
151
13
INSURANCE
m
Q1 2015
Q1 2014
Growth %
3 months to 31 March
UK Protection gross premiums
372
353
5
UK Protection new business annual premiums
56
62
(10)
SAVINGS
bn
Q1 2015
Q1 2014
Growth %
3 months to 31 March
Savings AUA
113.2
101.8
11
Savings net flows
0.5
1.1
(55)
LEGAL & GENERAL CAPITAL (LGC)
bn
3 months to 31 March
Q1 2015
Q1 2014
Growth %
Group-wide direct investments
6.3
3.9
62
LEGAL & GENERAL AMERICA (LGA)
$m
Q1 2015
Q1 2014
Growth %
3 months to 31 March
LGA gross premiums
283
269
5
LGA new business annual premiums
31
38
(18)
1. LGIM international assets include c40.bn of US business transferred to LGIM's Chicago office from the UK business and $23.3bn of advisory assets resulting from the acquisition of Global Index Advisors (GIA), both in 2014.
2. Includes revenues earned on funds managed by LGIM, therefore excluding administrative revenues earned on Workplace Savings assets.
FINANCIAL PERFORMANCE - OPERATIONAL CASH UP 11% AND NET
CASH UP 8%
Operational cash generation for the Group is up 11% to 330m in the first three months of the year (Q1 2014: 297m). We have grown our stock of assets: increasing annuity assets in LGR; assets under management in LGIM and shareholder assets in LGC. This growth, together with an increased contribution from General Insurance and increased dividends received from LGA, with the ordinary dividend of $80m, equating to 52m, up 10% on 2014 (Q1 2014: $73m equating to 44m) has driven record operational cash generation for the Group
New business strain of 4m (Q1 2014: surplus of 4m) primarily resulted from lower levels of bulk annuity transactions in the quarter. As a result net cash generation increased by 8% to 326m (Q1 2014: 301m).
TRADING UPDATE - FURTHER GROWTH IN BUSINESS STOCK
LEGAL & GENERAL RETIREMENT (LGR)
Total annuity assets increased by 19% to 45.6bn (Q1 2014: 38.3bn). Net flows were 0.2bn (Q1 2014: 2.8bn).
Bulk annuity sales were 655m (Q1 2014: 3,045bn) resulting from 15 policies (Q1 2014: 7 policies). Q1 2014 included the 3.0bn bulk annuity transaction with the ICI Pension Fund. Whilst actual transaction flows are dependent on their affordability, which remain determined on underlying scheme funding levels and prevailing market conditions, we continue to see strong demand for de-risking solutions and retain a healthy transaction pipeline. Individual Annuity sales were 99m (Q1 2014: 244m) following the 2014 budget changes. We remain focussed on achieving our target return on economic capital across all of our annuity products.
Alongside new products developed for the post Budget retirement landscape, in March 2015 we acquired Newlife Home Finance Limited, a provider of lifetime mortgages. We believe that increasing numbers of customers will seek to supplement their retirement income by releasing some of the equity in their homes. We expect to write over 100m of lifetime mortgages this year and increasing amounts thereafter.
LEGAL & GENERAL INVESTMENT MANAGEMENT (LGIM)
Total assets increased 17% to 736.8bn (Q1 2014: 630.9bn). Total net inflows were 2.6bn (Q1 2014: 9.0bn) of which external AUM net flows were 4.3bn (Q1 2014: 6.6bn) driven by on-going client appetite for LGIM's de-risking capabilities, our workplace proposition and retail funds. Net outflows from GIA's advisory assets were 1.2bn as expected. LGIM is focusing its defined contribution proposition as we continue to develop our fund range for the US DC market. Revenues, excluding workplace savings, increased 13% to 170m (Q1 2014: 151m).
Total Solutions assets increased 24% to 304.0bn (Q1 2014: 244.8bn). Net inflows of 4.9bn (Q1 2014: 6.4bn), more than offset net outflows from Index funds of 1.5bn (Q1 2014: 0.9bn) as defined benefit pension schemes continue to de-risk. We are well placed to continue to benefit from this trend, recently launching an expanded range of LDI solutions to meet clients' requirements.
Property assets were up 29% to 15.3bn (Q1 2014: 11.9bn). Net property inflows of 0.4bn (Q1 2014: 0.7bn) were driven by external flows and continued demand for real assets from our LGR and LGC divisions.
International assets were 126.4bn (Q1 2014: 66.0bn), which includes c40bn of assets transferred from the UK to be managed by the Chicago office in Q4 2014. We are having continued success in the US, recently launching an Index proposition to complement our Active Fixed Income and LDI funds, which have driven total international net inflows of 0.8bn (Q1 2014: 3.4bn) in the quarter.
Total workplace assets under administration increased 43% to 13.0bn (Q1 2014: 9.1bn). Net inflows were 0.5bn (Q1 2014: 0.5bn). Auto-enrolment participation rates remain high at more than 90% and we have retained our market share of 20% of new members being enrolled. Demand is being driven by smaller schemes reaching their staging dates and increasingly by large schemes being re-broked, where we have had notable success with some leading UK retailers including the John Lewis Partnership. Minimum contribution rates will more than double to 5% in less than two years time, which will contribute to an expected tripling of DC savings in the UK over the next 10 years.
INSURANCE
Total UK Protection gross written premiums increased 5% to 372m (Q1 2014: 353m).
UK Retail Protection sales were lower at 38m (Q1 2014: 42m) compared to a strong first quarter of 2014. Our direct to customer new business more than doubled compared to Q1 2014. UK Group Protection sales were 18m (Q1 2014: 20m) with Q1 2014 benefitting from one large contract.
General Insurance gross premiums were down 4% to 81m (Q1 2014: 84m) reflecting disciplined pricing although direct sales continued to grow. Our direct general insurance channel increased premiums by 16% to 22m (Q1 2014: 19m), benefitting from enhanced digital capabilities.
SAVINGS
Total Savings assets under administration increased 11% to 113.2bn (Q1 2014: 101.8bn) with net flows of 0.5bn (Q1 2014: 1.1bn).
Our Savings division now comprises 'Digital Savings', including Cofunds and Suffolk Life and 'Mature Savings' including retail pensions, bonds and our With-profits fund.
Digital Savings net inflows were 0.9bn (Q1 2014: 1.7bn). Cofunds assets of 76.0bn, up 16% (Q1 2014: 65.6bn) included net inflows of 0.7bn (Q1 2014: 1.5bn).
Following the closure to new business of our With-profits fund in January 2015 net outflows from mature products were 0.6bn (Q1 2014: 0.7bn). Since the pensions freedom legislation came into force on 6 April 2015 call volumes have been higher than average, with most customers so far electing to withdraw cash from their policies. Overall we do not anticipate a material impact on our back book of savings assets across the Group.
LEGAL & GENERAL CAPITAL (LGC)
Total direct investments across the principal balance sheet increased 62% to 6.3bn (Q1 2014: 3.9bn) including 0.4bn of new direct investments in the period. Utilising our expanding network of strategic partnerships, we have continued to make strong progress in the origination and development of alternative finance, housing and urban regeneration asset classes.
Further to our build-to-sell activities through CALA, we obtained planning permission for 1,000 homes in Crowthorne, entered the UK Private Rented Sector (PRS) by acquiring a regeneration site at Walthamstow in Q1 2015. We have also committed 100m, matched by Schroder UK Real Estate Fund, to the regeneration of Bracknell town centre and completed the purchase of a 50% interest in the Peel Group's landmark MediaCityUK scheme at Salford Quays in Manchester.
We are working with the Government's Regeneration Investment Organisation and announced that the Group will allocate up to 1.5bn to invest in urban infrastructure projects alongside capital from international investment partners.
We have completed 60m of loans through our pan-European SME lending business, Pemberton Asset Management, as we continue to take advantage of the significant investment opportunities presented by bank deleveraging.
LEGAL & GENERAL AMERICA (LGA)
In LGA the price changes we introduced in 2014 have resulted in sales of $31m (Q1 2014: $38m) with gross premiums increasing 5% to $283m (Q1 2014: $269m). LGA remains focused on net cash generation.
OUTLOOK
The Group continues to execute on its clear and focused growth strategy based on five key macro trends: ageing populations; globalisation of asset markets; welfare reform; digital lifestyles and retrenching banks. We are delivering this both organically and by selective bolt-on acquisitions. Our responses to these trends and the diversification within our business model have enabled us to deliver sustained growth in our cash. External political and regulatory uncertainties remain but by aligning our strategy to these five macro trends we believe we have created a high degree of resilience in our business model.
We are working closely with the Prudential Regulatory Authority (PRA) in respect of Solvency II and will submit applications in Q2 2015 for our internal model to calculate our Solvency Capital Requirement, the use of transitionals and a matching adjustment. We are engaged in on-going dialogue with the PRA and expect this process to conclude in Q4 2015. This regulatory framework will be applicable from 1 January 2016 and we will provide a further update on this process as clarity emerges.
Internationally our business continues to gather momentum with the encouraging start to the year continuing into the second quarter. LGIM has had notable successes in the US, winning our first Index mandate, and in Asia, winning further mandates across the region. In LGR, we continue to explore opportunities to use our specialist experience in the global de-risking market, including in the US and the Netherlands.
We see further opportunities in the UK Insurance market with our retail protection business securing further intermediary distribution arrangements in Q2 2015 and a strong group protection sales pipeline. We expect new business volumes and margins across our UK Protection businesses for 2015 to be broadly in line with 2014.
We are on track to deliver c80m of operating cost savings across the Group, reducing costs from 1,250m in 2014 to c1,170m, whilst incurring 40m of restructuring costs in 2015. We are decluttering our business model to focus on core strategies and have contracted to sell Legal & General International (Ireland) Limited, representing 2.7bn of AUA, which is expected to complete in Q2 2015.
We remain confident in delivering the 2015 operational cash guidance we gave at the time of the 2014 full year results.
Enquiries
Investors:
Laura Doyle Head of Investor Relations 020 3124 2088
Stephen Thomas Investor Relations Manager 020 3124 2047
Media:
John Godfrey Corporate Affairs Director 020 3124 2090
Richard King Head of Group Corporate Communications 020 3124 2095
Michelle Clarke Tulchan Communications 020 7353 4200Notes
ANALYST CALL DETAILS:
A copy of this announcement can be found in "Results", under the "Financial information" section of our shareholder website athttp://www.legalandgeneralgroup.com/investors/results.cfm
There will be a teleconference at 10.00 BST. Investors should dial +44 (0)20 3059 8125. A replay of the teleconference will be available on our website.
FINANCIAL CALENDAR 2015:
Date
Annual general meeting
21 May 2015
Payment date of 2014 final dividend
4 June 2015
Half-year Results 2015
5 August 2015
Q3 Interim Management Statement 2015
4 November 2015
DEFINITIONS:
Operational cash generation is the expected release from in-force business for the UK non-profit insurance and savings and LGR businesses, the shareholder's share of bonuses on with-profits business, the post-tax operating profit on other UK businesses, including the expected investment return on LGC invested assets, and dividends remitted from our international businesses.
Net cash generation is defined as operational cash generation less new business strain.
The Group's principal balance sheet includes those assets to which shareholders are exposed, excluding assets where our customers have the total market risk and reward.
FORWARD LOOKING STATEMENTS:
This announcement may contain certain forward-looking statements relating to Legal & General, 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'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 announcement or any other forward-looking statement it may make.
ASSET AND PREMIUM FLOWS
Legal & General investment management assets
Active
Index
fixed
Solu-
Active
Total
Advisory
Total
For the three months
funds
income
tions1
Property
equities
AUM
assets
assets
ended 31 March 2015
bn
bn
bn
bn
bn
bn
bn
bn
At 1 January 2015
274.8
103.8
293.3
13.6
8.2
693.7
14.8
708.5
External inflows
6.8
2.3
1.4
0.3
-
10.8
10.8
External outflows
(8.3)
(1.6)
(1.6)
(0.1)
-
(11.6)
(11.6)
Overlay/ advisory net flows
-
-
5.1
-
-
5.1
(1.2)
3.9
External net flows2
(1.5)
0.7
4.9
0.2
-
4.3
(1.2)
3.1
Internal net flows
-
(0.6)
-
0.2
(0.1)
(0.5)
-
(0.5)
Total net flows
(1.5)
0.1
4.9
0.4
(0.1)
3.8
(1.2)
2.6
Cash management movements3
-
1.7
-
-
-
1.7
-
1.7
Market and other movements2
11.3
4.8
5.8
1.3
0.1
23.3
0.7
24.0
At 31 March 2015
284.6
110.4
304.0
15.3
8.2
722.5
14.3
736.8
Assets attributable to:
External
630.2
14.3
644.5
Internal
92.3
-
92.3
Assets attributable to:
UK
610.4
-
610.4
International
112.1
14.3
126.4
1. Solutions include liability driven investments, multi-asset funds, and include 197.1bn (Q1 2014: 168.3bn) of derivative notionals associated with the Solutions business.
2. External net flows exclude movements in short term overlay assets, with maturity as determined by client agreements and are subject to a higher degree of variability. The total value of these assets at 31 March 2015 is 44.0bn (Q1 2014: 33.8bn) and the movement in these assets is included in market and other movements for overlay assets.
3. Cash management movements include external holdings in money market funds and other cash mandates held for clients' liquidity management purposes.
3
months
to
31.03.15
bn
LGIM total external AUM net flows 1
4.3
Attributable to:
International
0.8
UK Institutional
- Defined contribution
0.4
- Defined benefit
3.1
UK Retail
-
1. External net flows exclude movements in short term overlay assets, with maturity as determined by client agreements and cash management movements.
Legal & General investment management total assets quarterly progression
Active
Index
fixed
Solu-
Active
Total
Advisory
Total
For the year ended
funds
income
tions1
Property
equities
AUM
assets
assets
31 December 2014
bn
bn
bn
bn
bn
bn
bn
bn
At 1 January 2014
269.8
89.4
232.5
11.3
8.6
611.6
-
611.6
External inflows
4.9
1.4
2.4
0.3
-
9.0
9.0
External outflows
(5.8)
(0.5)
(1.2)
(0.1)
-
(7.6)
(7.6)
Overlay/ advisory net flows
-
-
5.2
-
-
5.2
-
5.2
External net flows2
(0.9)
0.9
6.4
0.2
-
6.6
-
6.6
Internal net flows
-
2.0
-
0.5
(0.1)
2.4
-
2.4
Total net flows
(0.9)
2.9
6.4
0.7
(0.1)
9.0
-
9.0
Cash management movements3
-
-
-
-
-
-
-
-
Market and other movements2
1.5
2.9
5.9
(0.1)
0.1
10.3
-
10.3
At 31 March 2014
270.4
95.2
244.8
11.9
8.6
630.9
-
630.9
External inflows
6.1
1.5
2.8
0.3
0.1
10.8
10.8
External outflows
(13.5)
(1.4)
(0.9)
(0.1)
(0.1)
(16.0)
(16.0)
Overlay/ advisory net flows
-
-
7.1
-
-
7.1
0.1
7.2
External net flows2
(7.4)
0.1
9.0
0.2
-
1.9
0.1
2.0
Internal net flows
(0.1)
(1.3)
0.5
0.2
(0.1)
(0.8)
-
(0.8)
Total net flows
(7.5)
(1.2)
9.5
0.4
(0.1)
1.1
0.1
1.2
Acquisition of GIA assets
-
-
-
-
-
-
13.4
13.4
Cash management movements3
-
0.2
-
-
-
0.2
-
0.2
Market and other movements2
5.8
3.0
(1.2)
0.5
(0.3)
7.8
0.2
8.0
At 30 June 2014
268.7
97.2
253.1
12.8
8.2
640.0
13.7
653.7
External inflows
5.6
1.0
1.5
0.3
-
8.4
8.4
External outflows
(8.7)
(0.8)
(1.4)
(0.2)
-
(11.1)
(11.1)
Overlay/ advisory net flows
-
-
2.5
-
-
2.5
-
2.5
External net flows2
(3.1)
0.2
2.6
0.1
-
(0.2)
-
(0.2)
Internal net flows
(0.3)
(0.9)
(0.1)
(0.1)
(0.1)
(1.5)
-
(1.5)
Total net flows
(3.4)
(0.7)
2.5
-
(0.1)
(1.7)
-
(1.7)
Cash management movements3
-
(0.7)
-
-
-
(0.7)
-
(0.7)
Market and other movements2
5.2
1.7
17.4
0.4
(0.2)
24.5
0.5
25.0
At 30 September 2014
270.5
97.5
273.0
13.2
7.9
662.1
14.2
676.3
External inflows
7.1
1.6
1.8
0.5
-
11.0
11.0
External outflows
(11.5)
(1.1)
(3.1)
(0.1)
-
(15.8)
(15.8)
Overlay/ advisory net flows
-
-
4.0
-
-
4.0
(0.3)
3.7
External net flows2
(4.4)
0.5
2.7
0.4
-
(0.8)
(0.3)
(1.1)
Internal net flows
0.2
(0.3)
-
0.1
0.2
0.2
-
0.2
Total net flows
(4.2)
0.2
2.7
0.5
0.2
(0.6)
(0.3)
(0.9)
Cash management movements3
-
(1.1)
-
-
-
(1.1)
-
(1.1)
Market and other movements2
8.5
7.2
17.6
(0.1)
0.1
33.3
0.9
34.2
At 31 December 2014
274.8
103.8
293.3
13.6
8.2
693.7
14.8
708.5
1. Solutions include liability driven investments, multi-asset funds, and include 194.6bn at 31 December 2014 (Q1 2014: 168.3bn; Q2 2014: 174.9bn; Q3 2014: 185.3bn) of derivative notionals associated with the Solutions business.
2. External net flows exclude movements in short term overlay assets, with maturity as determined by client agreements and are subject to a higher degree
of variability. The total value of these assets at 31 December 2014 is 46.5bn (Q1 2014: 33.8bn; Q2 2014: 33.3bn; Q3 2014: 41.2bn), and the movement in these
assets is included in market and other movements for overlay assets.
3. Cash management movements include external holdings in money market funds and other cash mandates held for clients' liquidity management purposes.
Legal & General investment management total assets quarterly progression (continued)
3
3
3
3
months
months
months
months
to
to
to
to
31.12.14
30.09.14
30.06.14
31.03.14
bn
bn
bn
bn
Total assets attributable to:
External1
618.5
591.5
570.3
547.8
Internal
90.0
84.8
83.4
83.1
Total assets attributable to:
UK
579.7
589.8
570.8
564.9
International1
128.8
86.5
82.9
66.0
1. Total assets at 31 December 2014 include 14.8bn of advisory assets (Q1 2014: nil; Q2 2014: 13.7bn; Q3 2014: 14.2bn).
Legal & General investment management total external Assets Under Management net flows
quarterly progression
3
3
3
3
months
months
months
months
to
to
to
to
31.12.14
30.09.14
30.06.14
31.03.14
bn
bn
bn
bn
LGIM total external AUM net flows1
(0.8)
(0.2)
1.9
6.6
Attributable to:
International
1.6
1.3
2.4
3.4
UK Institutional
-Defined contribution
0.9
0.7
0.5
0.6
-Defined benefit
(3.6)
(2.2)
(1.2)
2.3
UK Retail
0.3
-
0.2
0.3
1. Extermal net flows exclude movements in short term overlay assets, with maturity as determined by client agreements and cash management movements.
Assets under administration
Digital
LGIM
Consol-
France
Mature
idation
and
Retail
Suffolk
Retail
adjust-
Total
Nethe-
Work-
Invest-
For the three months
Platforms1
Life
Savings3,4
ment5
Savings
rlands
place
ments6
Annuities
ended 31 March 2015
bn
bn
bn
bn
bn
bn
bn
bn
bn
At 1 January 2015
71.9
7.7
36.0
(6.9)
108.7
4.4
11.1
21.3
44.2
Gross inflows2
1.9
0.3
0.3
-
2.5
0.1
0.6
1.5
0.7
Gross outflows
(1.2)
(0.1)
(0.9)
0.2
(2.0)
(0.1)
(0.1)
(1.6)
-
Payments to pensioners
-
-
-
-
-
-
-
-
(0.5)
Net flows
0.7
0.2
(0.6)
0.2
0.5
-
0.5
(0.1)
0.2
Market and other
movements
3.4
0.3
0.7
(0.4)
4.0
(0.1)
1.4
1.2
1.2
At 31 March 2015
76.0
8.2
36.1
(7.1)
113.2
4.3
13.0
22.4
45.6
1. Platforms include Investor Portfolio Services (IPS) and Cofunds.
2. Platforms gross inflows include Cofunds institutional net flows. Total Q1 2015 Platforms comprise 38.8bn (Q1 2014: 36.6bn) of retail assets and 37.2bn (Q1 2014: 29.0bn) of assets held on behalf of institutional clients.
3. Mature Retail Savings products include with-profits products, bonds and retail pensions.
4. Total AUA at 31 March 2015 include 2.7bn of assets relating to Legal & General International (Ireland) Limited, which is contracted for sale to Canada Life Group during the second quarter of 2015, subject to regulatory approval.
5. Consolidation adjustment represents Suffolk Life and Retail Savings assets included in the Platforms column.
6. Q1 2015 Retail Investments include 1.8bn (Q1 2014: 1.6bn) of LGIM unit trust assets held on our Cofunds platform and 3.4bn (Q1 2014: 3.2bn) of LGIM unit trust assets held on our IPS platform.
Assets under administration quarterly progression
Digital
LGIM
Consol-
France
Mature
idation
and
Retail
Suffolk
Retail
adjust-
Total
Nether-
Work-
Invest-
For the year ended
Platforms1
Life
Savings3
ment4
Savings
lands
place
ments5
Annuities
31 December 2014
bn
bn
bn
bn
bn
bn
bn
bn
bn
At 1 January 2014
64.1
6.6
36.3
(6.8)
100.2
4.5
8.7
20.5
34.4
Gross inflows
2.6
0.3
0.4
(0.1)
3.2
0.1
0.7
1.0
3.3
Gross outflows
(1.1)
(0.1)
(1.1)
0.2
(2.1)
(0.1)
(0.2)
(0.9)
-
Payments to pensioners
-
-
-
-
-
-
-
-
(0.5)
Net flows
1.5
0.2
(0.7)
0.1
1.1
-
0.5
0.1
2.8
Market and other
movements
-
0.1
0.5
(0.1)
0.5
(0.1)
(0.1)
0.2
1.1
At 31 March 2014
65.6
6.9
36.1
(6.8)
101.8
4.4
9.1
20.8
38.3
Gross inflows2
2.2
0.3
0.3
(0.1)
2.7
0.1
0.6
0.9
0.2
Gross outflows
(1.2)
(0.1)
(1.1)
0.2
(2.2)
(0.1)
(0.1)
(1.5)
-
Payments to pensioners
-
-
-
-
-
-
-
-
(0.5)
Net flows
1.0
0.2
(0.8)
0.1
0.5
-
0.5
(0.6)
(0.3)
Market and other
movements
0.8
0.1
0.6
-
1.5
0.1
(0.1)
0.4
0.5
At 30 June 2014
67.4
7.2
35.9
(6.7)
103.8
4.5
9.5
20.6
38.5
Gross inflows2
2.8
0.4
0.4
(0.2)
3.4
0.1
0.7
1.2
0.4
Gross outflows
(1.3)
(0.2)
(1.2)
0.2
(2.5)
(0.1)
(0.2)
(1.3)
-
Payments to pensioners
-
-
-
-
-
-
-
-
(0.6)
Net flows
1.5
0.2
(0.8)
-
0.9
-
0.5
(0.1)
(0.2)
Market and other
movements
0.1
0.1
0.4
(0.1)
0.5
(0.1)
0.1
0.2
1.6
At 30 September 2014
69.0
7.5
35.5
(6.8)
105.2
4.4
10.1
20.7
39.9
Gross inflows2
2.5
0.3
0.3
(0.1)
3.0
0.1
0.8
1.3
2.6
Gross outflows
(1.1)
(0.1)
(1.0)
0.1
(2.1)
(0.1)
(0.1)
(1.1)
-
Payments to pensioners
-
-
-
-
-
-
-
-
(0.5)
Net flows
1.4
0.2
(0.7)
-
0.9
-
0.7
0.2
2.1
Market and other
movements
1.5
-
1.2
(0.1)
2.6
-
0.3
0.4
2.2
At 31 December 2014
71.9
7.7
36.0
(6.9)
108.7
4.4
11.1
21.3
44.2
1. Platforms include Investor Portfolio Services (IPS) and Cofunds.
2. Platforms gross inflows include Cofunds institutional net flows. Total 2014 Platforms comprise 38.3bn (Q1 2014 36.6bn; Q2 2014: 37.3bn; Q3 2014: 37.4bn) of retail assets and 33.6bn (Q1 2014: 29.0bn; Q2 2014: 30.1bn; Q3 2014: 31.6bn) of assets held on behalf of institutional clients.
3. Mature Retail Savings products include with-profits products, bonds and retail pensions.
4. Consolidation adjustment represents Suffolk Life and Retail Savings assets included in the Platforms column.
5. 2014 Retail Investments include 1.7bn (Q1 2014: 1.6bn; Q2 2014: 1.5bn; Q3 2014: 1.6bn) of LGIM unit trust assets held on our Cofunds platform and 3.2bn (Q1 2014: 3.2bn; Q2 2014: 3.2bn; Q3 2014: 3.2bn) of LGIM unit trust assets held on our IPS platform.
LGR new business
3
3
3
3
3
months
months
months
months
months
to
to
to
to
to
31.03.15
31.12.14
30.09.14
30.06.14
31.03.14
m
m
m
m
m
Individual Annuities
99
83
125
139
244
Bulk Purchase Annuities
655
2,619
233
90
3,045
Total LGR new business
754
2,702
358
229
3,289
Insurance new business annual premiums
3
3
3
3
3
months
months
months
months
months
to
to
to
to
to
31.03.15
31.12.14
30.09.14
30.06.14
31.03.14
m
m
m
m
m
UK Retail Protection
38
41
41
41
42
UK Group Protection
18
11
14
20
20
France Protection
31
-
-
-
33
Netherlands Protection
1
-
1
-
2
US Protection
20
21
23
24
23
Total Insurance new business
108
73
79
85
120
Gross written premiums on Insurance business
3
3
3
3
3
months
months
months
months
months
to
to
to
to
to
31.03.15
31.12.14
30.09.14
30.06.14
31.03.14
m
m
m
m
m
UK Retail Protection
270
273
269
260
254
UK Group Protection
102
57
65
130
99
General Insurance
81
95
104
94
84
France Protection
43
41
41
45
46
Netherlands Protection
13
9
16
12
14
US Protection
184
184
162
170
162
Longevity Insurance
79
82
84
83
84
Total gross written premiums on insurance business
772
741
741
794
743
Overseas new business in local currency
Annual
Single
Annual
Single
Annual
Single
premiums
premiums
premiums
premiums
premiums
premiums
31.03.15
31.03.15
31.03.14
31.03.14
31.12.14
31.12.14
US (US$m)
31
-
38
-
150
-
Netherlands (m)
4
37
2
35
10
138
France (m)
42
111
40
83
41
351
India (Rs m) - Group's 26% interest
198
1,067
202
1,474
408
4,003
Egypt (Pounds m) - Group's 55% interest
55
-
46
-
149
-
Gulf (US$m) - Group's 50% interest
1
1
1
1
3
5
This information is provided by RNSThe company news service from the London Stock ExchangeENDIMSLLFETERIEIIE
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