Insurer expects positive UK markets
The Legal & General group (L&G) has predicted its core UK markets will rebound in 2010 despite announcing a 7% decrease in global sales last year.
L&G said it expected its savings and protection and annuities sectors to improve after a difficult 2009, and pushed for new sales by signing distribution agreements with Northern Rock, Saga and Skipton Building society.
Although it forecast a slow recovery for the UK's economy and property market in the coming months, L&G said it improved efficiency and focused business activity on markets with potential growth in 2009, which helped it beat its trade expectations.
It substantially beat targets set at the beginning of the year, generating more than £200 million above a £450 million cash target from its UK business and cutting £65 million in cost savings - £15 million more than its original aim.
Favourable annuity pricing conditions and growth in assets under management also helped Legal & General perform well in the UK, said chief executive Tim Breedon.
The domestic successes contrasted with a 6.6% year-on-year fall in worldwide new business sales, but the group said this fit market forecasts. The drop did not prevent L&G share values rising more than 3%.