LONDON: Britain's third largest insurer Legal & General Group Plc, posted an increase of 29 per cent in its sales in the last quarter of 2005, topping market expectations, as it benefitted from new businesses and launched more profitable products.
Its new business volume rose to 317 million pounds in the fourth quarter from 250 million pounds in the corresponding previous year quarter while sales of its U.K. life and pension products increased 6 per cent to 181 million pounds, the company said.
The insurer's new chief executive Tim Breedon said there has been an increasing demand for products like mortgage protection, which he claimed has been as a result of the upturn in the housing market in the country. Its sales of individual annuities, however, fell 57 per cent to 92 million pounds, Breedon said, adding there has been intense competition in this field but the company could resist it to some extent.
Its U.K. market share could be 10 to 11 per cent during the quarter, claimed director of U.K. operations Robin Phipps. It is likely to go up during 2006, he said.
Legal & General is going to provide annuities for some of Skandia AB's U.K. pension customers. Corporate sales of annuities reached 328 million pounds during the quarter, more than triple the amount for the corresponding previous year quarter.
The insurer said funds invested in its investment management business, Legal & General Investment Management, grew 57 per cent to 6.9 billion pounds. At the year-end it had 204 billion pounds under its management.
Breedon reiterated that Legal & General is committed to the domestic market scotching rumours that it is planning to turn its focus on more rewarding overseas markets. The U.K. market is growing, he said, and that is what the company is looking at.
The company is expected to report its full year figures in March. The good show notwithstanding, shares of the company decline 0.8 per cent to 126.25 pence giving it a value of 8.18 billion pounds.
Posted
on : Fri, 27 Jan 2006 14:00 GMT | Insurance News
By : Pippa Fielding
|
