Britain’s third-largest insurer Legal & General posted a 10 p.c rise in working revenue to 1.9 billion kilos ($2.5 billion) in 2018, helped by file gross sales of annuities, it stated on Wednesday.
L&G offered 10 billion kilos of annuities, most of them via the majority annuity market, wherein firms offload the danger to insurers of their outlined profit, or remaining wage, pension schemes.
The majority annuity market is predicted to achieve file ranges this 12 months, with some analysts estimating gross sales of 30 billion kilos.
Nigel Wilson, chief government of Authorized & Normal, instructed CNBC Wednesday that reaching that quantity was a “fantastic achievement.”
“One of many key issues is that grew to become the U.Okay.’s first trillion pound asset administration enterprise which is a superb achievement by my colleagues,” he instructed CNBC’s “Squawk Field Europe.”
“And it is about consistency, consistency of technique, consistency of supply. Just about for the final 10 years we have been averaging 10 p.c development in working revenue and earnings per share and a 22.7 p.c return on fairness is hardly shabby in these very tough low rate of interest environments,” he stated, “I am actually happy general with the outcomes.”
Chief monetary officer Jeff Davies instructed a media name that the agency has “a superb outlook for 2019 throughout annuities and asset administration.”
The agency was actively quoting on round 20 billion kilos in bulk annuity offers, he added.
Authorized & Normal Funding Administration, one of many greatest buyers within the U.Okay. inventory market, noticed a 3 p.c rise in belongings beneath administration to 1 trillion kilos.
The revenue numbers, consistent with company-supplied consensus forecasts, exclude the discharge of longevity reserves made attainable by a slowdown in life expectancy enhancements, the life insurer stated in a press release.
The corporate stated it might pay a complete dividend of 16.42 pence, up seven p.c and consistent with forecasts.