Legal & general group PLC:
QUARTER 1 2012 INTERIM management STATEMENT
3rd May 2012
LEGAL & GENERAL builds further scale in key markets
operational cash generation £249m (Q1 2011: £245M)
net cash generation £210M (Q1 2011: £209M)
LGIM assets up to £383BN (FY 2011: £371bn)
LGIM net flows up 29% to £2.6bn (q1 2011: £2.0bn)
risk sales up 8% to £78m APE (Q1 2011: £72m APE)
savings sales down 6% to £300m APE (Q1 2011: £320m APE)
international sales up 37% to £56m APE (Q1 2011: £41m APE)
Tim Breedon, Group Chief Executive, said:
"The strength of Legal & General's diversified model has enabled us to deliver strong sales in Risk, increased net inflows to LGIM and another good performance on cash generation this quarter.
"Despite the challenging economic backdrop we have strong positions in our chosen markets. LGIM delivered positive net flows of £2.6bn, up 29% on Q1 2011, and now has assets under management of £383bn. Risk has achieved sales growth of 8% as consumers seek to protect their families and to secure their retirement incomes. Our International operation had a strong quarter with sales of £56m, 37% above Q1 2011. However, Savings has been affected by lower consumer confidence and disposable income, and as a result APE is down 6% to £300m.
"Our workplace savings model is proving attractive to employers. In the first quarter, we secured 31 new scheme mandates, three of which have potential members of 15,000 each. Total new mandates provide us with a potential 415,000 scheme members after auto enrolment.
"We continue to evolve our model both in the UK and in International markets and our diverse product range and broad distribution position us to respond well to regulatory changes. Although we expect market conditions to remain challenging, we remain confident in our ability to continue delivering growth in scale together with substantial cash generation in 2012 and beyond."
