New Business Results 1999

Legal & General Group PLC 14 January 2000 Legal & General Group Plc 1999 New Business Results A record £16.5 billion invested with the Group in 1999 Funds under management reached £104 billion - up 25% Worldwide EPI* £628m +27% UK total EPI* £541m +24% UK individual EPI* £442m +20% UK corporate EPI* £99m +46% International EPI* £87m +50% New fund management business £13.1bn +16% *Equivalent Premium Income (EPI) is total annual premiums + 10% of single premiums and includes unit trust sales, for continuing operations. Group Chief Executive, David Prosser, said: 'This is another set of record results showing the continuing strength and momentum of our customer focused business. UK new business exceeded £500 million EPI for the first time and sales have almost trebled since 1995 - a compound growth rate of 29% per annum. 'Our fund management business won £13.1 billion in new funds - another record. Funds under management have exceeded £100 billion for the first time and have trebled over the last five years. This makes Legal & General one of the fastest growing UK fund management businesses. 'Our strategy of good value products, provided to customers through the distribution channel of their choice, continues to build market share and gives a good return to shareholders. We are very well positioned for the future. The support of our many customers and business partners has enabled us to achieve these remarkable results. With their continued support, Legal & General faces the future with great confidence and high expectations.' UK business =========== Retail ------ 1999 saw further strong growth in new individual business, up 20% to £442m EPI (1998: £368m). New business in the final quarter was £102m EPI, an increase of 23% over the final quarter of 1998. Life Mortgage related business grew rapidly in 1999, as Legal & General built upon its strength in the housing market, both through Business Partnerships and by focusing on IFAs. As a consequence, life annual premium sales grew by 37% to £126m (1998: £92m). Mortgage related annual premiums include £20m of protection business and £46m of Flexible Mortgage PEP/ISA sales. Single premium bond sales remained strong throughout 1999, growing by 42% to £634m (1998: £446m), supported by the launch of our new With-Profits Bond in August. Pensions Our continued success in the group personal pensions market has largely offset the uncertainties created in the individual personal pensions market, where sales have slowed ahead of the launch of Stakeholder Pensions. New individual pension and annuity business, including group personal pensions, increased to £142m EPI (1998: £138m). We believe Legal & General is well positioned for the introduction of Stakeholder Pensions in April 2001. Unit trusts and PEPs/ISAs Legal & General enjoyed a strong final PEP season and, although investors' initial reaction to ISAs was one of caution, they have become increasingly accepted. Single payment ISA sales in the second half of 1999 exceeded PEP sales over the equivalent period of 1998 by 18%. This - together with increased institutional sales - produced a 16% increase in single payment sales over the full year to £877m (1998: £755m). Total PEP and ISA assets under management now exceed £2.5bn. Banking New mortgage advances grew by 83% to £271m, driven by our Flexible Reserve product. Mortgage loans now total £868m. The launch of Legal & General's 'Easy Access' LIBOR tracker deposit account in November has generated an encouraging response from savers. By the year-end, Legal & General Bank deposits exceeded £1.03bn (1998: £942m) on behalf of some 66,000 customers. Distribution Multi-channel distribution is a key component in Legal & General's growth strategy. This maintains the greatest access to potential customers and embraces our business partners, IFAs and direct sales to customers through our call centre, the Internet and 'off the page'. Each of these channels is making increasing use of e-commerce opportunities to drive down costs and to enhance customer service. All channels have achieved volume growth, but growth continues to be strongest in the IFA channel, with individual new business growing by 31% over the prior year. Corporate UK corporate life and pensions new business in 1999 grew by 46% to £99m EPI (1998: £68m). Strong growth in bulk purchase annuity business in the first and final quarters of the year pushed single premiums up by 85% to £643m (1998: £348m). The group risk business achieved record sales levels, with new annual premiums increasing by 20% to £24m (1998: £20m). Investment management Our investment management business provides asset management expertise to Legal & General's Retail and Corporate businesses, as well as to trustees of pension schemes and other institutional clients. Total assets under management exceeded £100bn at the year-end, of which over 60% are held for external clients. This underlines Legal & General's position as a major UK investment house and as a leading provider of index tracking services. New funds under management rose 16% to £13.1bn, following the exceptional result of £11.3bn achieved in 1998. International life and pensions New business from the Group's international operations grew strongly to £87m EPI, an increase of 50%. Our business in the USA had another excellent year and has established itself as one of the major specialist writers of term assurance. Legal & General America markets its products through a national brokerage distribution to high net worth individuals. Its success is based upon excellent underwriting capabilities and the efficiency of its low cost, internet based operating environment. New business (which is almost entirely annual premium business) increased by 77% to $101m EPI (1998: $57m). Continuing strong performance in the Netherlands saw sales grow by 20% to Dfl 30m EPI (1998: Dfl 25m). Annual premiums grew particularly strongly - up 29% to Dfl 18m, of which Dfl 7m (39%) represented sales of the new flexible universal life product launched in April. In France, there was a 12% increase in new business over the year to Ffr 161m EPI (1998: Ffr 144m). New annual premiums - including group protection business - increased 10% to Ffr 53m. Life single premiums grew 22% to Ffr 754m, with a particularly strong performance in the final quarter which benefited from the launch of a new unit linked fund. For further information contact: Investors: Peter Horsman Media: Graham Rimmer Investor Relations Manager Chief Press Officer 0171 528 6362 0171 528 6252 Anthony Carlisle Citigate Dewe Rogerson 0171 638 9571 LEGAL & GENERAL GROUP PLC UNAUDITED NEW BUSINESS PREMIUMS YEAR ENDED 31 DECEMBER 1999 NEW UK BUSINESS =============== Year ended Three months to 31 December 31 December 1999 1998 inc/ 1999 1998 inc/ (dec) (dec) £m £m % £m £m % RETAIL LIFE AND PENSIONS BUSINESS New annual premiums Life: - Mortgage related 107 71 30 22 - Savings 2 2 0 1 - Protection 17 19 4 5 Pensions: - Individual pensions 73 77 15 17 --- --- --- --- --- --- Total new annual premiums 199 169 18 49 45 9 Single premiums Life: - With profits 448 274 106 76 - Other 186 172 36 50 Pensions: - Individual pensions 260 272 39 61 - Annuities - individual 304 291 92 42 - DSS rebates 120 45 33 34 ----- ----- --- --- --- --- Total single premiums 1,318 1,054 25 306 263 16 Retail life and pensions EPI 331 274 21 80 71 13 CORPORATE LIFE AND PENSIONS BUSINESS New annual premiums - Group risk 24 20 6 4 - Group pensions 11 13 6 3 --- --- --- --- --- --- Total new annual premiums 35 33 6 12 7 71 Single premiums - Annuities - bulk purchase 573 258 235 46 - Other group business 70 90 17 19 --- --- --- --- --- --- Total single premiums 643 348 85 252 65 288 Corporate life --- --- --- --- --- --- and pensions EPI 99 68 46 37 13 185 UNIT TRUSTS, PEPS AND ISAS New annual premiums - PEPs/ISAs (excluding cash ISAs) 23 19 11 4 Single premiums - Unit trusts 276 154 66 33 - PEPs/ISAs (excluding cash ISAs) 601 601 46 47 --- --- --- --- --- --- Unit trusts/PEPs/ISAs EPI 111 94 18 22 12 83 --- --- --- --- --- --- Total UK EPI 541 436 24 139 96 45 === === === === === === ------ ------ --- ----- ----- --- PENSION FUND MANAGEMENT 13,098 11,322 16 3,950 4,360 (9) ====== ====== === ===== ===== === LEGAL & GENERAL GROUP PLC UNAUDITED NEW BUSINESS PREMIUMS YEAR ENDED 31 DECEMBER 1999 NEW BUSINESS FROM CONTINUING OPERATIONS ===================== Year ended Year ended 31 December 1999 31 December 1998 Annual Single Annual Single £m £m £m £m LIFE AND PENSIONS Life 150 634 112 446 Pensions 84 1,327 90 956 --- ----- --- ----- UK 234 1,961 202 1,402 USA 63 1 34 5 Netherlands 5 35 4 38 France 5 71 5 66 --- ----- --- ----- INSURANCE TOTAL 307 2,068 245 1,511 RETAIL INVESTMENT BUSINESS UK 23 877 19 755 France 31 36 --- ----- --- ----- TOTAL NEW BUSINESS 330 2,976 264 2,302 === ===== === ===== OVERSEAS OPERATIONS IN LOCAL CURRENCY ================= Year ended 31 December inc/(dec) 1999 1998 % USA ($m): New annual premiums 101 56 Single premiums 1 8 EPI 101 57 77 Netherlands (D.Fl.m): New annual premiums 18 14 Single premiums 125 117 EPI 30 25 20 France (F.Fr.m): New annual premiums 53 48 Single premiums 754 618 Unit trusts 329 339 EPI 161 144 12 UK INDIVIDUAL EPI BY CHANNEL ============================ Year ended 31 December 1999 Annual Single (10%) Total EPI £m £m £m % Independent financial advisers 107 144 251 57 Business partners 52 10 62 14 Financial consultancy 36 19 55 12 Direct 27 47 74 17 --- --- --- --- Total 222 220 442 100 === === === === Year ended 31 December 1998 Annual Single (10%) Total EPI £m £m £m % Independent financial advisers 80 111 191 52 Business partners 45 7 52 14 Financial consultancy 40 15 55 15 Direct 23 48 71 19 --- --- --- --- Total 188 181 369 100 === === === ===

Companies

Legal & General Group (LGEN)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today