L&G 2010 Final Results Part 6

RNS Number : 0987D

Legal & General Group Plc

17 March 2011

 



New Business								Page 97
6.01 Investment management new business
								Increase/
						2010	2009	(decrease)
						£m	£m	%
Managed pension funds1
Pooled funds						19,898	25,606	(22)
Segregated funds						5,756	3,381	70
Total managed funds						25,654	28,987	(11)
Other funds2						8,932	4,297	108
Total new funds						34,586	33,284	4
Attributable to:
Legal & General Investment Management						33,134	31,485	5
Legal & General Retail Investments						1,452	1,799	(19)
6.02 Investment management new business quarterly progression
	3 months to	3 months to	3 months to	3 months to	3 months to	3 months to	3 months to	3 months to
	31.12.10	30.09.10	30.06.10	31.03.10	31.12.09	30.09.09	30.06.09	31.03.09
	£m	£m	£m	£m	£m	£m	£m	£m
Managed pension funds1
Pooled funds	3,569	4,009	4,936	7,384	6,742	7,076	5,763	6,025
Segregated funds	490	221	4,777	268	1,344	790	533	714
Total managed funds	4,059	4,230	9,713	7,652	8,086	7,866	6,296	6,739
Other funds2	2,955	1,400	981	3,596	869	1,326	1,382	720
Total new funds	7,014	5,630	10,694	11,248	8,955	9,192	7,678	7,459
Attributable to:
Legal & General Investment Management	6,669	5,307	10,305	10,853	8,450	8,853	7,166	7,016
Legal & General Retail Investments	345	323	389	395	505	339	512	443
1. New monies from pension fund clients of Legal & General Assurance (Pensions Management) exclude £5.9bn (2009: £7.9bn) held through the year on a temporary basis, generally as part of portfolio reconstructions.
2. Includes segregated property, property partnerships, private equity partnerships and institutional clients funds managed by Legal & General Investment Management and institutional investments in unit trust funds managed by Legal & General Retail Investments.
6.03 Legal & General Investment Management new business by investment approach
							2010	2009
							%	%
Indexed equities							47	49
Indexed bonds (including index linked funds and cash)							24	27
Active bonds (including index linked funds and cash)							12	14
Liability driven investments							15	10
Property							1	-
Active equities							1	-
Total							100	100
New Business								Page 98
6.04 Funds under management
						At	At	Increase/
						31.12.10	31.12.09	(decrease)
						£m	£m	%
Total investments						353,520	315,101	12
Represented by
Index tracking funds:
- UK equities						71,982	68,971	4
- Overseas equities						85,999	73,858	16
- Fixed interest						36,496	36,534	-
- Index linked						33,872	28,245	20
- Cash/deposits						188	695	(73)
Total index tracking funds						228,537	208,303	10
Actively managed funds						84,207	76,860	10
Liability driven investments						40,776	29,938	36
						353,520	315,101	12
By investment approach
Index equities						157,981	142,828	11
Index bonds (including index linked funds and cash)						70,556	65,475	8
Active bonds (including index linked funds and cash)						66,564	61,167	9
Liability driven investments						40,776	29,938	36
Active equities						9,137	8,788	4
Property						8,136	6,675	22
Private equity						370	230	61
						353,520	315,101	12
By source of business
Institutional funds under management1:
- Managed pension funds pooled						206,400	190,792	8
- Liability driven investments						40,776	29,938	36
- Other						16,772	11,261	49
- Managed pension funds segregated						3,508	4,330	(19)
Total institutional funds under management						267,456	236,321	13
UK businesses (life and general insurance funds)						70,024	65,106	8
UK businesses (unit trusts - excluding life fund investment)						16,040	13,674	17
						353,520	315,101	12
1.  Excludes institutional investments in unit trust funds.
Funds under management of £11bn (31 December 2009: £19bn) derived from retail investments and additional funds managed overseas, take total worldwide funds under management to £365bn (31 December 2009: £334bn).
New Business								Page 99
6.05 Savings net flows
								Increase/
						2010	2009	(decrease)
						£m	£m	%
Investments						4,149	2,557	62
Insured						476	89	435
With-profits						(1,480)	(898)	65
Total net flows						3,145	1,748	80
6.06 Savings net flows quarterly progression
	3 months to	3 months to	3 months to	3 months to	3 months to	3 months to	3 months to	3 months to
	31.12.10	30.09.10	30.06.10	31.03.10	31.12.09	30.09.09	30.06.09	31.03.09
	£m	£m	£m	£m	£m	£m	£m	£m
Investments	985	1,106	1,123	935	788	822	417	530
Insured	211	163	74	28	47	(29)	32	39
With-profits	(483)	(369)	(290)	(338)	(457)	(77)	(343)	(21)
Total net flows	713	900	907	625	378	716	106	548
New Business							Page 100
6.07 Worldwide new business
		Annual	Single	APE	Annual	Single	APE	Increase/
		premiums	premiums		premiums	premiums		(decrease)
		2010	2010	2010	2009	2009	2009
		£m	£m	£m	£m	£m	£m	%
Protection
- Individual		118	-	118	123	-	123	(4)
- Group		57	-	57	57	-	57	-
		175	-	175	180	-	180	(3)
Annuities
- Individual (non profit)		-	1,142	114	-	962	96	19
- Individual (with-profits)		-	26	3	-	17	2	50
- Bulk purchase		-	897	90	-	883	88	2
		-	2,065	207	-	1,862	186	11
Total Risk		175	2,065	382	180	1,862	366	4
Investments1		26	6,169	643	32	4,092	441	46
Insured business		299	1,795	478	144	1,307	275	74
With-profits		71	608	132	103	879	191	(31)
Total Savings		396	8,572	1,253	279	6,278	907	38
- USA		52	-	52	49	-	49	6
- Netherlands		6	124	18	8	142	22	(18)
- France		22	237	46	14	237	38	21
- India (26% share)		13	7	14	-	-	-	N/A
- Egypt (55% share)		10	-	10	-	-	-	N/A
		103	368	140	71	379	109	28
France retail investment business		-	60	6	-	56	6	-
Total International		103	428	146	71	435	115	27
Total worldwide new business		674	11,065	1,781	530	8,575	1,388	28
1. Investments excludes institutional investments in unit trust funds which are disclosed as part of institutional fund management new business (see Note 6.01).
New Business							Page 101
6.08 Worldwide new business APE quarterly progression
	3 months to	3 months to	3 months to	3 months to	3 months to	3 months to	3 months to	3 months to
	31.12.10	30.09.10	30.06.10	31.03.10	31.12.09	30.09.09	30.06.09	31.03.09
	£m	£m	£m	£m	£m	£m	£m	£m
Protection
- Individual	30	31	29	28	31	32	30	30
- Group	15	14	14	14	16	11	16	14
	45	45	43	42	47	43	46	44
Annuities
- Individual (non profit)	24	30	33	27	16	22	25	33
- Individual (with-profits)	2	-	1	-	1	-	1	-
- Bulk purchase	36	9	30	15	9	5	24	50
	62	39	64	42	26	27	50	83
Total Risk	107	84	107	84	73	70	96	127
Investments1	157	143	179	164	134	118	108	81
Insured business	106	182	124	66	66	68	68	73
With-profits	29	27	39	37	34	39	66	52
Total Savings	292	352	342	267	234	225	242	206
- USA	16	14	13	9	9	11	13	16
- Netherlands	5	3	4	6	5	4	6	7
- France	8	6	19	13	7	1	6	24
- India (26% share)	3	3	2	6	-	-	-	-
- Egypt (55% share)	2	3	5	-	-	-	-	-
	34	29	43	34	21	16	25	47
France retail investment business	1	1	1	3	2	1	1	2
Total International	35	30	44	37	23	17	26	49
Total worldwide new business	434	466	493	388	330	312	364	382
1. Investments excludes institutional investments in unit trust funds which are disclosed as part of institutional fund management new business (see Note 6.02).
New Business							Page 102
6.09 Worldwide new business annual premium quarterly progression
	3 months to	3 months to	3 months to	3 months to	3 months to	3 months to	3 months to	3 months to
	31.12.10	30.09.10	30.06.10	31.03.10	31.12.09	30.09.09	30.06.09	31.03.09
	£m	£m	£m	£m	£m	£m	£m	£m
Protection
- Individual	30	31	29	28	31	32	30	30
- Group	15	14	14	14	16	11	16	14
	45	45	43	42	47	43	46	44
Annuities
- Individual (non profit)	-	-	-	-	-	-	-	-
- Individual (with-profits)	-	-	-	-	-	-	-	-
- Bulk purchase	-	-	-	-	-	-	-	-
	-	-	-	-	-	-	-	-
Total Risk	45	45	43	42	47	43	46	44
Investments1	7	4	10	5	5	8	10	9
Insured business	47	138	81	33	30	38	36	40
With-profits	17	13	18	23	18	17	36	32
Total Savings	71	155	109	61	53	63	82	81
- USA	16	14	13	9	9	11	13	16
- Netherlands	1	2	1	2	2	2	2	2
- France	2	-	12	8	-	(5)	-	19
- India (26% share)	2	3	2	6	-	-	-	-
- Egypt (55% share)	2	3	5	-	-	-	-	-
	23	22	33	25	11	8	15	37
France retail investment business	-	-	-	-	-	-	-	-
Total International	23	22	33	25	11	8	15	37
Total worldwide new business	139	222	185	128	111	114	143	162
1. Investments excludes institutional investments in unit trust funds which are disclosed as part of institutional fund management new business (see Note 6.02).
New Business							Page 103
6.10 Worldwide new business single premium quarterly progression
	3 months to	3 months to	3 months to	3 months to	3 months to	3 months to	3 months to	3 months to
	31.12.10	30.09.10	30.06.10	31.03.10	31.12.09	30.09.09	30.06.09	31.03.09
	£m	£m	£m	£m	£m	£m	£m	£m
Protection
- Individual	-	-	-	-	-	-	-	-
- Group	-	-	-	-	-	-	-	-
	-	-	-	-	-	-	-	-
Annuities
- Individual (non profit)	243	298	334	267	165	214	260	323
- Individual (with-profits)	11	5	6	4	6	4	4	3
- Bulk purchase	361	89	298	149	91	54	234	504
	615	392	638	420	262	272	498	830
Total Risk	615	392	638	420	262	272	498	830
Investments1	1,513	1,377	1,692	1,587	1,274	1,110	988	720
Insured business	591	441	434	329	372	290	319	326
With-profits	113	144	207	144	157	229	290	203
Total Savings	2,217	1,962	2,333	2,060	1,803	1,629	1,597	1,249
- USA	-	-	-	-	-	-	-	-
- Netherlands	42	16	23	43	29	27	31	55
- France	61	53	78	45	66	61	61	49
- India (26% share)	2	3	1	1	-	-	-	-
- Egypt (55% share)	-	-	-	-	-	-	-	-
	105	72	102	89	95	88	92	104
France retail investment business	11	9	11	29	13	11	16	16
Total International	116	81	113	118	108	99	108	120
Total worldwide new business	2,948	2,435	3,084	2,598	2,173	2,000	2,203	2,199
1. Investments excludes institutional investments in unit trust funds which are disclosed as part of institutional fund management new business (see Note 6.02).
New Business							Page 104
6.11 International new business in local currency
		Annual	Single	APE	Annual	Single	APE	Increase/
		premiums	premiums		premiums	premiums		(decrease)
		2010	2010	2010	2009	2009	2009	%
USA ($m)		80	-	80	76	-	76	5
Netherlands (€m)		7	146	22	9	157	25	(12)
France (€m):
- Life and pensions		27	277	55	15	264	41	34
- Unit trusts		-	70	7	-	63	6	17
India (Rs m) - Group's 26% interest		934	459	980	-	-	-	N/A
Egypt (Pounds m) - Group's 55% interest		87	3	87	-	-	-	N/A
6.12 UK APE by channel quarterly progression
	3 months to	3 months to	3 months to	3 months to	3 months to	3 months to	3 months to	3 months to
	31.12.10	30.09.10	30.06.10	31.03.10	31.12.09	30.09.09	30.06.09	31.03.09
	£m	£m	£m	£m	£m	£m	£m	£m
Retail IFA	166	150	164	156	131	117	126	136
Employee benefit consultants	118	178	145	84	69	72	105	128
Tied agents	11	9	12	8	9	11	13	7
Bancassurance	97	93	115	94	91	89	83	52
Direct	7	6	13	9	7	6	11	10
Total	399	436	449	351	307	295	338	333
6.13 UK APE by channel
					Annual	Single	Total APE	% of
For the year ended 31 December 2010					£m	£m	£m	total
Retail IFA					75	5,610	636	39
Employee benefit consultants					389	1,360	525	32
Tied agents					29	110	40	3
Bancassurance					57	3,420	399	24
Direct					21	137	35	2
Total					571	10,637	1,635	100
					Annual	Single	Total APE	% of
For the year ended 31 December 2009					£m	£m	£m	total
Retail IFA					84	4,263	510	40
Employee benefit consultants					259	1,149	374	29
Tied agents					30	104	40	3
Bancassurance					65	2,495	315	25
Direct					21	129	34	3
Total					459	8,140	1,273	100

 

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