The group’s pension assets were driven by positive net flows across “every client segment, region and product level”, with the National Grid pension scheme, integrated in Q4, adding £12bn of inflows.
LGIM showed an 8% growth in assets under management to £746.1bn, up from £693.7bn in 2014.
LGIM is seeing strong net inflows across its range of products, with demand for liability-driven investment, multi-asset, real assets and fixed income dominating.
As well as retail sales continuing to rise, LGIM says it hopes to increase the customers on its defined contribution platform to around two million by the end of 2016.
Legal & General posted a 14% increase in both net cash generation and operating profit.
L&G holds a Solvency II surplus of £5.5bn, which it says provides a coverage ratio of 169% and will be used to cover against pension transfer business.
Nigel Wilson, group chief executive, says: “We had already moved to a capital-lite model for UK pension risk transfer business in anticipation of the new Solvency II regime and we will use our Solvency II surplus capital of £5.5bn to continue to deliver on our strategy.
“We have a robust business model, which has proved to be adept and resilient in dealing with fiscal and regulatory changes in our sector. We are planning for more global economic and market volatility and are well positioned for continued pressure on pricing and changes in product mix in our industry.”
The results confirmed the sale of Sipp provider Suffolk Life, to Curtis Banks, should complete in the first half of this year.
Elsewhere L&G said its platforms business delivered net flows of £3.5bn, a 35% decline on last year’s £5.4bn asset flows, with Cofunds managing to deliver its £11m cost savings by the end of 2015 – as agreed at the time of whole acquisition.
Mature retail savings took a hit of £2.8bn to cover the disposal of offshore arm L&G International (Ireland), which was sold to Canada Life in February 2015.
