Strong trading performance.

Strong trading performance.
GROSS WRITTEN PREMIUMS ON INSURANCE BUSINESS (GWP)

£2.8bn

(2012: £2.5bn)

ANNUITIES SINGLE PREMIUMS

£4.1bn

(2012: £2.3bn)

LGIM ASSETS UNDER MANAGEMENT (AUM)

£450bn

(2012: £406bn)

LGAS SAVINGS ASSETS

£109bn

(2012: £55bn)

GROSS WRITTEN PREMIUMS ON INSURANCE BUSINESS (GWP)

GWP is an industry measure of the life insurance premiums due and the general insurance premiums underwritten in the reporting period, before any deductions for reinsurance.

(XLS:) Gross written premiums on insurance business (GWP)

 

2013
£m

2012
£m

Group Protection

336

321

Retail Protection

990

947

General Insurance

375

349

France (LGF)

168

159

Netherlands (LGN)

54

47

US Protection

654

584

Longevity insurance

212

70

Total GWP on insurance business

2,789

2,477

LGIM ASSETS UNDER MANAGEMENT (AUM)

Assets under management is the total amount of money investors have trusted to our fund managers to invest across our investment products.

(XLS:) LGIM Assets under management (AUM)

 

2013
£bn

2012
£bn

1.

LGIM AUM includes £34 billion (2012: £32 billion) managed on behalf of LGR and £38 billion (2012: £38 billion) managed on behalf of LGAS Savings.

Index tracking funds

270

243

Active fixed interest

89

82

Solutions

71

64

Property, active equities and other

20

17

Total LGIM AUM1

450

406

ANNUITIES SINGLE PREMIUMS

Single premiums arise on the sale of new contracts where the terms of the policy do not anticipate more than one premium being paid over its lifetime, such as in individual and bulk annuity deals.

(XLS:) Annuities single premiums

 

2013
£m

2012
£m

Individual Annuities

1,277

1,320

Bulk purchase annuities

2,812

1,019

Total annuities single premiums

4,089

2,339

LGAS SAVINGS ASSETS

Assets represent the total amount of money held within all of our savings products. These funds are invested by a number of investment managers, including LGIM.

(XLS:) LGAS savings assets

 

2013
£bn

2012
£bn

1.

Platforms includes Cofunds and Investor Portfolio Services (IPS).

2.

Mature Retail Savings products include with-profit products, bonds and retail pensions.

3.

Consolidation adjustment represents Suffolk Life and Mature Retail Savings assets included in the Platforms assets.

Platforms1

64

9

Mature Retail Savings2

36

36

Workplace

9

6

Suffolk Life

7

5

Consolidation adjustment3

(7)

(1)

Total LGAS Savings assets

109

55

BUSINESS SEGMENT

 

LEGAL & GENERAL ASSURANCE
SOCIETY (LGAS)

£1,923m insurance GWP

(2012: £1,823m)

£109bn savings assets

(2012: £55bn)

JOHN POLLOCK, CEO, LGAS

Protection extends its market leading position

Retail Protection continues to hold a market leading position. GWP grew from £947 million in 2012 to £990 million for 2013, reflecting the advantages of our distribution footprint, underwriting excellence and highly automated systems.

Excellent sales in Group Protection for the year grew GWP to £336 million, 5% up on 2012. We had an ongoing benefit from auto-enrolment and employers were attracted to the benefit of our market-leading expertise in employee rehabilitation.

General Insurance bolstered by strong growth in direct

Premium growth reflects 40% growth in the direct channel. Record levels of new business were achieved in Q2 and Q3 this year.

Workplace results reflect auto-enrolment success

Assets are 45% up from the prior year, reflecting auto-enrolment success and strong market growth. We have enrolled over half a million new members into our Workplace pensions in 2013.

£56bn growth in platforms assets

Our platform proposition has been significantly boosted by the successful acquisition of Cofunds during the year. We now have platform assets of £64 billion with net inflows in 2013 of £7.9 billion.

Mature Retail Savings assets flat in a maturing market

Net outflows in these products were in line with our expectation, as the overall market matures and we focus on our platform propositions. Our with-profits fund delivered an investment return before tax of over 11% in 2013.

LEGAL & GENERAL RETIREMENT (LGR)

£4,089m annuity premiums

(2012: £2,339m)

£212m longevity GWP

(2012: £70m)

KERRIGAN PROCTER, MD, LGR

Record BPA sales, up 176%

Bulk purchase annuities (BPA) sales achieved a record level of £2,812 million, more than double the £1,019 million for 2012, benefitting in particular from the Lucida acquisition in August. We also completed our first international BPA transaction with New Ireland Assurance in April.

Individual annuities premiums reduced marginally by 3% to £1,277 million (2012: £1,320 million). This is a strong performance against last year’s record sales and in a relatively weak individual annuities market in 2013.

LGR completed three longevity insurance transactions in 2013, covering £5.0 billion of associated liabilities and 49,000 existing pensioners.

LEGAL & GENERAL INVESTMENT
MANAGEMENT (LGIM)

£450bn AUM

(2012: £406bn)

MARK ZINKULA, CEO, LGIM

International expansion continues resulting in record net flows

LGIM has achieved another year of record gross inflows. At £52 billion these are 40% higher than 2012. Over a third (£19 billion) of gross flows were sourced from outside the UK. We have seen strong inflows from the Gulf, US and Europe. External net inflows totalled £9.3 billion which, coupled with positive market movements, resulted in AUM of £450 billion (11% higher than 2012).

LEGAL & GENERAL AMERICA (LGA)

£654m GWP

(2012: £584m)

JIMMY ATKINS, CEO, LGA

US business continues to grow, over a million customers

LGA delivered a 12% increase in GWP to £654 million (2012: £584 million). LGA continues to promote its products to key brokerage agents and remains a top three provider of term assurance in the US market. LGA now has over one million customers.

More details of new business can be found in Note 6.

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