L&G reports 17% increase in GI premiums

Legal & General has reported a 17% increase in general insurance premiums for Q1 2012, and a 9% increase in protection sales.

L&G saw gross premiums of £83m, compared to £71m in Q1 2011, with 21% growth in its broker channel and 25% growth in the direct channel.

Individual protection achieved the strongest quarter since 2008 and volumes were 9% higher at £36m, compared to £33m in Q1 2011.

In the region of half of these polices are to cover family or business protection needs and the remainder are linked to a mortgage.

Overall, L&G reported operational cash generation of £249m, compared to £245m in Q1 2011, with net cash generation of £210m, slightly up from £209m in 2011.

Its risk sales were up 8% to £78m, from £72m in Q1 2011.

But savings sales were down 6% to £300m, compared to £320m in Q1 2011.

Tim Breedon, group chief executive of L&G, says: “The strength of Legal & General’s diversified model has enabled us to deliver strong sales in risk, increased net inflows to LGIM and another good performance on cash generation this quarter.

“Despite the challenging economic backdrop we have strong positions in our chosen markets. LGIM delivered positive net flows of £2.6bn, up 29% on Q1 2011, and now has assets under management of £383bn. Risk has achieved sales growth of 8% as consumers seek to protect their families and to secure their retirement incomes.

“We continue to evolve our model both in the UK and in International markets and our diverse product range and broad distribution position us to respond well to regulatory changes. Although we expect market conditions to remain challenging, we remain confident in our ability to continue delivering growth in scale together with substantial cash generation in 2012 and beyond.”