LGIM posts £38bn of inflows for 2017

Legal & General Investment Management took in total external net inflows of £38.1bn by the end of October, in a year of “great momentum” for its life insurance parent company.

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The UK life insurer confirmed in its latest trading update that it was “on track for a record year for earnings and profits,” reporting higher sales growth across its business channels.

The day before, it announced it would be divesting its mature savings unit for £650m to accelerate growth in areas like its investment arm.

LGIM said inflows were well-diversified across its product line and geography, singling out liability driven investments, active fixed and property funds as strong performers.

By the end of October, international net inflows totalled £26.1bn with £11.3bn coming from the US and £10.9bn from Europe. Its US asset management business, the largest in its stable, now manages $170bn in assets under management for over 330 institutional clients.

But the FTSE 100 insurer has been aggressively trying to expand its presence in Europe and Asia, entering into the European ETF market last month and opening an office in Tokyo.

Commenting on the update, CEO Nigel Wilson said: “Our core business divisions are generating formidable momentum. With yesterday’s announcement of the sale of our closed book, in run-off Mature Savings business for £650m, our business is now well-positioned and focused on the products and geographies where we see optimum growth and cultural alignment.”

Wilson added that the group’s market share, balance sheet and management capabilities put it in an ideal position to benefit from “global growth opportunities”.

Its pensions and general insurance businesses also brought in strong sales in the months to the end of October.

The L&G retirement hub took in £6.2bn of sales, with UK individual annuity premiums up 93%, equivalent to a 14% market share off the back of favourable demographic trends and uptick in pension risk transfers.

L&G’s shares opened 0.76% higher at £2.64 per share as markets opened.

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