Record Revenues for Legal & General
Legal & General Group (ISE: LGEN.L) released its Q3 2012 interim management statement this morning to fanfare, as it revealed record third-quarter sales.
The leading provider of risk, savings, and investment management products in the U.K. stated that its divisions have delivered 533 million pounds of annualized premium equivalent (APE) for Q3, which is an increase of 28% over the same period last year, and have grown 2012 year-to-date (YTD) APE to 1,422 million pounds, 6% up on Q3 2011 YTD's figure of 1,338 million pounds.
Other highlights include U.K. protection sales growing 30% to 56 million pounds from 43 million pounds at the same period last year, and U.S. protection sales jumping 33% to 24 million pounds compared to 18 million pounds in Q3 2011.
Assets under management were up 5% from the 371 billion pounds recorded at the same time last year, to reach 391 billion pounds at the end of the quarter.
Elsewhere, individual annuity sales were boosted 10% from Q3 2011's figure of 319 million pounds to reach 350 million pounds; net cash generation was up 15 million pounds to 616 million pounds; while total operational cash reached 702 million pounds and operational cash from the divisions hit 686 million pounds, up 25 million pounds.
Dividends are expected to be consistent with Legal & General's previous guidance, with Nigel Wilson, group chief executive, commenting: "We are starting to accelerate the evolution of our business; our aim now is to translate strong operating performance into strong earnings growth."
Wilson went on to state:
Success with Auto-enrolment has led to transfers of related schemes, and net pension inflows of [0.4 billion pounds] in Q3. The international expansion of LGIM [Legal & General Investment Management] is accelerating, with [5.6 billion pounds] net inflows YTD from international clients.
"Global economies are undergoing profound structural changes. We have the solutions to meet gaps emerging from public and private deleveraging and the ambition to strengthen further our reach in protection, retirement solutions, fund management and infrastructure finance. Our businesses can grow, delivering more value for society, customers and shareholders.
The share price increased by 2.8% (3.70 pence) to 137.74 pence on early trading this morning, having previously hit a low of 23.1 pence in the depths of the financial crisis back in 2009. Canny investors who got on board at that price would now see almost-sixfold returns on their investment.
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