L&G 3rd Quarter New Business
Legal & General Group PLC
20 October 2003
20 October 2003
Legal & General Group Plc
=========================
New business results to 30 September 2003
=========================================
Three months Three months Change
to 30/9/03 to 30/9/02
New business APE (Note(1))
- UK individual business £177m £170m +4%
- UK group business £26m £16m +63%
UK total £203m £186m +9%
International £23m £23m nil
Total £226m £209m +8%
Institutional fund management £4.1bn £3.0bn +36%
Note (1) Annual Premium Equivalent (APE) is total new annual premiums + 10% of
single premiums including ISAs and unit trusts.
David Prosser, Group Chief Executive, said: 'Legal & General continues to make
good progress in steadily improving market conditions with out-performance
against the corresponding quarter last year and, we believe, further market
share growth.
Success in distribution remains key for Legal & General. We are continuing both
to build our IFA strengths and to secure important new distribution agreements.
Legal & General Investment Management continues its remarkable record. Already
the largest manager of UK pension funds, it is deepening customer relationships
and extending its product range to become an increasingly strong business.'
UK new business
===============
In the third quarter, individual new business volumes (including ISAs and unit
trusts) grew 4% on the corresponding quarter last year to reach £177m APE (2002:
£170m). Individual life and pensions sales at £131m were 13% ahead of second
quarter sales. Group business at £26m APE in the third quarter (2002: £16m)
continued to reflect increased levels of bulk purchase annuity business. In
total, new business for the first nine months of the year was £608m APE (2002:
£635m), a decline of 4%.
Individual life
---------------
In the third quarter, annual premium sales increased from £36m in 2002 to £43m,
which also represented a 10% increase on the second quarter of 2003. New annual
premiums for the first nine months increased 7% to £114m (2002: £107m) as a
result of the strong position we have built in the life protection market,
particularly in mortgage related sales.
Demand for single premium bonds continued to reflect subdued investor sentiment
towards with-profit bonds. Although third quarter sales were lower than the
corresponding period last year at £275m (2002: £293m) they exceeded the second
quarter by 14% as a consequence of stronger sales of unit linked products. Over
the first nine months sales were 26% lower at £789m (2002: £1,069m).
Individual pensions
-------------------
Third quarter new annual premium business at £24m (2002: £39m) continued the
weaker trend seen in the first half of the year following the initial take up of
stakeholder schemes in 2002. We continue to focus on acquiring employer-related
schemes where there is a matching contribution from the employer. New annual
premium business over the first nine months amounted to £81m (2002: £132m).
In contrast single premium business was stronger, growing by 47% in the third
quarter to £360m (2002: £245m) as a consequence of increased individual annuity
sales and a higher level of DSS rebates. Over the first nine months of the year,
single premium business grew 41% to £876m (2002: £623m).
ISAs and unit trusts
--------------------
We have grown new business in the third quarter against the corresponding period
last year, benefiting from the support of our strategic partners and more stable
market conditions.
Regular payment business was lower in the third quarter bringing sales for the
first nine months to £27m (2002: £42m). Single payment sales in the third
quarter increased by 31% from £294m in 2002 to £386m reflecting improved market
conditions. For the nine-month period single payment sales increased by 9% to
£1,410m (2002: £1,299m).
Group business
--------------
In the third quarter, bulk purchase annuity single premiums at £149m exceeded
both the second quarter of 2003 (£119m) and the corresponding quarter last year
(£35m) as we continued to win encouraging volumes in the small and mid-sized
segment. This growth was the main driver of group new business, which increased
by 42% to £78m APE in the first nine months (2002: £55m).
Institutional fund management
=============================
Our institutional fund management subsidiary maintained its highly successful
track record with third quarter new business increasing by 36% to £4.1bn (2002:
£3.0bn). With new business of £10.1bn in the first nine months of the year
(2002: £10.2bn), we have maintained our record of averaging over £1bn of new UK
pension fund investment business per month since January 1998.
In a recent presentation to analysts and fund managers Tim Breedon, Group
Director (Investments), outlined the continuing growth of our index fund
business (including expansion beyond our existing UK customer base) and the
successful development of our active bonds business. This presentation can be
found at http://investor.legalandgeneral.com/presentations.cfm .
International business
======================
In the USA annual premium business slowed in the third quarter reflecting the
competitive environment. New business in the first nine months was $66m APE
(2002: $68m).
Our European businesses produced Eur. 45m APE in the first nine months (2002:
Eur. 47m). In the Netherlands, despite growth in single premiums in the third
quarter, volumes for the first nine months were lower at Eur. 21m (2002: Eur.
23m). In France, third quarter volumes grew from Eur. 8m to Eur. 9m APE, leaving
sales unchanged in the first nine months at Eur. 24m APE.
For further information contact:
Investors: Peter Horsman Media: John Morgan
Head of Investor Relations Head of Public Relations
020 7528 6362 020 7528 6213
Anthony Carlisle
Citigate Dewe Rogerson
020 7638 9571
07973 611888
Notes:
======
1. A copy of this announcement can be found in the shareholder section of our
website at http://investor.legalandgeneral.com/releases.cfm
2. Financial Calendar:
2003 full year new business results 27 January 2004
2003 preliminary results 26 February 2004
2004 first quarter new business results and AGM 28 April 2004
2004 interim results and second quarter new business 29 July 2004
2004 third quarter new business results 20 October 2004
LEGAL & GENERAL GROUP PLC
UNAUDITED NEW BUSINESS PREMIUMS
NINE MONTHS TO 30 SEPTEMBER 2003
NEW UK BUSINESS Nine months to Three months to
30 September increase/ 30 September increase/
2003 2002 (decrease) 2003 2002 (decrease)
£m £m % £m £m %
INDIVIDUAL LIFE AND PENSIONS BUSINESS
New annual premiums
Life:
- Mortgage related 78 73 30 24
- Protection 36 34 13 12
Pensions:
- Individual pensions 81 132 24 39
------ ------ ------ ------ ------ ------
Total new annual premiums 195 239 (18) 67 75 (11)
Single premiums
Life:
- With-profits 450 886 122 221
- Other 339 183 153 72
Pensions:
- Individual pensions 217 214 52 64
- Annuities - individual 525 300 211 115
- DSS rebates 134 109 97 66
------ ------ ------ ------ ------ ------
Total single premiums 1,665 1,692 (2) 635 538 18
Individual life ------ ------ ------ ------ ------ ------
and pensions APE 362 408 (11) 131 129 2
====== ====== ====== ====== ====== ======
Nine months to Three months to
30 September increase/ 30 September increase/
2003 2002 (decrease) 2003 2002 (decrease)
£m £m % £m £m %
ISAS, PEPS AND UNIT TRUSTS
New annual premiums
- ISAs/PEPs
(excluding cash ISAs) 22 37 (41) 7 11 (35)
- Unit trusts 5 5 1 0
------ ------ ------ ------
Total new annual premiums 27 42 (36) 8 11 (27)
Single premiums
- ISAs/PEPs
(excluding cash ISAs) 496 646 104 110
- Unit trusts 914 653 282 184
------ ------ ------ ------ ------ ------
Total single premiums 1,410 1,299 9 386 294 31
ISAs, PEPs and ------ ------ ------ ------ ------ ------
unit trusts APE 168 172 (2) 46 41 12
====== ====== ====== ====== ====== ======
------ ------ ------ ------ ------ ------
Total individual business APE 530 580 (9) 177 170 4
====== ====== ====== ====== ====== ======
Nine months to Three months to
30 September increase/ 30 September increase/
2003 2002 (decrease) 2003 2002 (decrease)
£m £m % £m £m %
GROUP LIFE AND PENSIONS BUSINESS
New annual premiums
- Group risk 24 24 11 10
- Group pensions 2 5 0 1
------ ------ ------ ------ ------ ------
Total new annual premiums 26 29 (10) 11 11 2
Single premiums
- Annuities - bulk purchase 515 210 149 35
- Other group business 9 52 5 24
------ ------ ------ ------ ------ ------
Total single premiums 524 262 100 154 59 160
Group life ------ ------ ------ ------ ------ ------
and pensions APE 78 55 42 26 16 63
------ ------ ------ ------ ------ ------
Total UK APE 608 635 (4) 203 186 9
====== ====== ====== ====== ====== ======
INSTITUTIONAL FUND MANAGEMENT
UK Managed Funds
- Pooled Funds 8,327 9,171 3,120 2,846
- Segregated Funds 1,256 489 897 12
------ ------ ------ ------
9,583 9,660 4,017 2,858
UK Other 470 543 56 127
------ ------ ------ ------ ------ ------
10,053 10,203 (1) 4,073 2,985 36
====== ====== ====== ====== ====== ======
LEGAL & GENERAL GROUP PLC
UNAUDITED NEW BUSINESS PREMIUMS
NINE MONTHS TO 30 SEPTEMBER 2003
WORLDWIDE NEW BUSINESS
Nine months to Three months to
30 September increase/ 30 September increase/
2003 2002 (decrease) 2003 2002 (decrease)
£m £m % £m £m %
Annual premiums
Life and pensions:
- Life 138 131 54 45
- Pensions 83 137 24 41
------ ------ ------ ------ ------ ------
UK 221 268 (18) 78 86 (9)
- USA 39 43 12 14
- Netherlands 8 8 2 3
- France 6 4 2 1
------ ------ ------ ------ ------ ------
Total life and pensions 274 323 (15) 94 104 (10)
Retail investment business:
- UK 27 42 8 11
------ ------ ------ ------ ------ ------
Total new annual premiums 301 365 (18) 102 115 (11)
Single premiums
Life and pensions:
- Life 789 1,069 275 293
- Pensions 1,400 885 514 305
------ ------ ------ ------ ------ ------
UK 2,189 1,954 12 789 598 32
- USA 11 2 3 1
- Netherlands 67 67 21 14
- France 85 83 36 30
------ ------ ------ ------ ------ ------
Total life and pensions 2,352 2,106 12 849 643 32
Retail investment business:
- UK 1,410 1,299 385 294
- France 18 23 9 7
------ ------ ------ ------ ------ ------
Total single premiums 3,780 3,428 10 1243 944 32
Annual Premium Equivalent (APE)
- UK life and pensions business 440 464 157 146
- Overseas life and pensions business 69 70 22 22
------ ------ ------ ------ ------ ------
Total life and pensions business 509 534 (5) 179 168 7
- UK retail investment business 168 172 46 40
- Overseas retail investment business 2 2 1 1
------ ------ ------ ------ ------ ------
Total retail investment business 170 174 (2) 47 41 15
------ ------ ------ ------ ------ ------
Worldwide APE 679 708 (4) 226 209 8
====== ====== ====== ====== ====== ======
LEGAL & GENERAL GROUP PLC
UNAUDITED NEW BUSINESS PREMIUMS
NINE MONTHS TO 30 SEPTEMBER 2003
OVERSEAS OPERATIONS
IN LOCAL CURRENCY
Nine months to increase/ Three months to increase/
30 September (decrease) 30 September (decrease)
2003 2002 % 2003 2002 %
USA ($m):
New annual premiums 64 68 19 25
Single premiums 18 3 5 2
APE 66 68 (3) 20 25 (20)
Netherlands (Eur. m):
New annual premiums 12 13 4 5
Single premiums 96 106 29 24
APE 21 23 (9) 6 7 (14)
France (Eur. m):
New annual premiums 9 7 3 2
Single premiums 121 133 50 52
Unit trusts 26 36 12 12
APE 24 24 0 9 8 13
UK INDIVIDUAL APE BY CHANNEL
Nine months to 30 September 2003
Annual Single Total APE
£m £m £m %
Independent financial advisers 106 177 283 53
Business partnerships 92 100 192 36
Business partnerships direct 9 16 25 5
Direct 15 15 30 6
------ ------ ------ ------
222 308 530 100
====== ====== ====== ======
Nine months to 30 September 2002
Annual Single Total APE
£m £m £m %
Independent financial advisers 125 137 262 44
Business partnerships 116 117 233 40
Business partnerships direct 20 20 40 7
Direct 20 25 45 8
------ ------ ------ ------
281 299 580 100
====== ====== ====== ======
Three months to 30 September 2003
Annual Single Total APE
£m £m £m %
Independent financial advisers 36 59 95 54
Business partnerships 32 37 69 39
Business partnerships direct 2 4 6 3
Direct 5 2 7 4
------ ------ ------ ------
75 102 177 100
====== ====== ====== ======
Three months to 30 September 2002
Annual Single Total APE
£m £m £m %
Independent financial advisers 41 41 82 48
Business partnerships 36 33 69 41
Business partnerships direct 6 5 11 6
Direct 4 4 8 5
------ ------ ------ ------
87 83 170 100
====== ====== ====== ======
This information is provided by RNS
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